The competent authority has the power to pass an order of provisional release of goods, pending confiscation proceedings : GUJ HC
Forum: Gujarat High Court
The Petitioners filed a writ petition after the goods of the Petitioners came to be seized and detained under Section 67 of the Central Goods and Services Tax Act.
The Petitioners prayed for the following reliefs:
(a) Quash the press note dated 08.02.2020 ;
(b) Quash and set aside the impugned summons issued to the Petitioner;
(c) Direct the Respondents not to take any actions against the Petitioner being proprietor of the M/s Karan Impex exercising powers under Section 69 read with Section 132 without following due procedure of law of assessment and adjudication of alleged evasion of GST as contemplated under Section 61, Section 73, Section 74 of the Central Goods and Service Tax Act, 2017.
The Ld. counsel for the Petitioners pointed out that his clients have been served with a notice under Section 130 of the CGST Act calling upon them to show cause as to why the goods should not be confiscated. The notice issued under Section 130 of the Act was yet to be adjudicated. Hence it was prayed that pending confiscation proceedings, the goods may be ordered to be released as the liability towards tax, penalty and fine has also been determined by the competent authority.
Thus, even pending the confiscation proceedings, the competent authority has the power to pass an order of provisional release of goods subject to certain terms and conditions.
The Hon’ble Court directed the Petitioners to prefer an appropriate application under Section 67(6) of the Act for the provisional release of the goods. The Ld. counsel for the Petitioners submitted that his clients will prefer an appropriate application for the provisional release of the goods, however, requested the Hon’ble HC to direct the competent authority to pass an appropriate order on such application at the earliest.
The Hon’ble HC thus directed that;
Pending the confiscation proceedings, if the Petitioners file an application under Section 67(6) of the Act for provisional release of the goods and the vehicle, if any, then the competent authority shall look into the same at the earliest and pass an appropriate order on such application within a period of fifteen days from the date of receipt of such application.
If the Petitioners are in any way aggrieved or dissatisfied with the order that may be passed by the competent authority under Section 67(6) of the Act, then it shall be open for them to prefer an appeal before the appellate authority under Section 107 of the Act.
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