TMI Blog2023 (8) TMI 1406X X X X Extracts X X X X X X X X Extracts X X X X ..... scation is warranted under Section 130 of the GST Act and therefore, proceeded to confiscate the goods. The order of confiscation is passed on 09.01.2023. Almost 8-months 2-days has lapsed from the date of detention of the goods, which are admittedly perishable in nature. Proviso to Section 129(6) of the GST Act, imposes duty on the authority to deal with perishable goods which are likely to depreciate in value with passage of time, is required to dispose of within 15 days and further discretion is vested with the Officer to reduce that 15 days. De hors the provisions of Section 130 of the GST Act, this Court is compelled to exercise discretion in favour of petitioner having taken cognizance of the laxness on the part of the authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 112 (8) of GST Act. Since goods seized are perishable in nature, he would request this Court to release the goods by imposing suitable conditions. 5. Per contra, learned AGA referring to provisions of Section 130 of GST Act, would contend that once authority has confiscated the goods under Section 130 of GST Act, the goods automatically vest with the State. Therefore, question of releasing goods in a proceedings under Section 130 of the GST Act would not arise. He would buttress his arguments placing reliance on the judgment of Hon'ble Apex Court in the case of The State of Uttar Pradesh and Ors Vs M/s Kay Pan Fragrance Pvt. Ltd reported in (2020) 5 Supreme Court Cases 811. He has also placed reliance on an interim ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The question that arose for consideration before the Division Bench of Hon'ble Gujarat High Court is as to whether an order for release of goods more particularly when the goods confiscated are found to be perishable, had arisen for consideration. Taking cognizance of the fact that the goods confiscated are found to be perishable in nature, the Gujarat High Court ordered for release of goods confiscated by calling upon the petitioner therein to deposit the tax, penalty and also bond equivalent to the amount of fine. The Hon'ble Gujarat High Court in the case of M/s Virani Tradeling Vs State of Gujarat (R/Special Civil Application No. 13083/2022), ordered for release of goods subject to compliance. 9. In the present case on h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is a compliance of Section 107(6) of the GST Act, the same would automatically operate as a stay and there would be an impediment for the concerned Officer to proceed with the auction, also cannot be acceded to. In an appeal by the petitioner, what was stayed by the Appellate authorities was the recovery of balance amount. 11. If these significant details are taken into consideration, de hors the provisions of Section 130 of the GST Act in the light of interim order granted by Hon'ble Division Bench of Gujarat High Court in an identical case, this Court is compelled to exercise discretion in favour of petitioner having taken cognizance of the laxness on the part of the authorities in not dealing with the perishable goods as contemp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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