TMI Blog2020 (4) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... ant had failed to furnish security, or to get the goods released, by paying the amount of tax and penalty imposed, the confiscation proceedings cannot be proceeded, because he had instituted a statutory appeal after compliance of pre-requisite condition. Release of goods - HELD THAT:- The provision under Section 129 is clear and unambiguous that the goods under detention can be released only on compliance with the provisions of sub-section (6) of Section 67 of the Act, which is made applicable with respect to the condition under Section 129, by virtue of Section 129(2) of the Act. The procedure for compliance of the conditions stipulated under Section 67(6) is literally provided under Section 140 of the Central Goods and Services Tax Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating the explanations offered in this regard. 3. It is pointed out that, against Ext.P3, the appellant had already filed a statutory appeal, as provided under Section 107 of the Act, after paying 10% of the disputed tax and penalty, to satisfy the prerequisite condition contemplated under Section 107(6)(b) of the Act. It was the contention in the writ petition that, since he had resorted to the statutory remedy of appeal by remitting 10% of the disputed tax and penalty, as required under Section 107, the entire balance amount is deemed to be under stay as provided in sub-section (7) to Section 107. Therefore the appellant pleaded for release of the goods, without proceeding with any further steps for confiscation of the same. 4. When ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n view of the provisions contained under sub-section (7) of Section 107. When the appellant had preferred the appeal after complying with the prerequisite condition stipulated thereunder, it is contended that, by virtue of provisions contained in sub-section (7) of Section 107 there is a deemed stay with respect to the collection and recovery of the tax and penalty imposed. Under such circumstances, provisions of sub-section (6) of Section 129 will not be attracted and the goods are not liable to be proceeded for confiscation under Section 130 of the Act. 7. We find force in the above said contention. Subsection (7) of S.107 provides that where the appellant had paid the amount stipulated under sub-section (6), which in the case at han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (6) of Section 67 of the Act, which is made applicable with respect to the condition under Section 129, by virtue of Section 129(2) of the Act. The procedure for compliance of the conditions stipulated under Section 67(6) is literally provided under Section 140 of the Central Goods and Services Tax Rules 2017. Therefore, unless the security as contemplated under Section 129(2), read with Section 67(6), is furnished with; or payment of the entire amount of tax and penalty imposed under Section 3 is made, the goods are not liable to be released. Therefore the relief sought for the release of the goods, pending disposal of the appeal, cannot be entertained. 10. Consequently, the above writ appeal is disposed of by reserving liberty to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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