Where goods & vehicles were seized without complying with requirements specified under the GST law, were directed to release goods & vehicles within 24 hours- High Court

Facts:

• In the instant case, petitioner claims to have purchased iron scrap from various dealers and states that it was in the process of transporting the same from Guwahati to Coimbatore.
• The vehicle was intercepted at Sholavaram by the Deputy Tax Officer, Roving Squad, who upon a perusal of the documents that the driver was carrying arrived at the conclusion that the goods were being re-routed without proper e-way bill.
• Thus, the vehicle and goods were seized by the officer but no order of detention has been sent to the petitioner.

Points Considered for Judgment:

• Order of detention/seizure has to be passed at time of such detention/seizure.
• Proper officer after detaining or seizing goods has to issue notice specifying penalty payable and pass order within 7 days thereafter from the date of serving of notice in relation to detention/seizure effected.
• Failure to comply with these requirements specified in section 129 of Central Goods and Services Act, 2017 would result in retention of vehicle and goods as gross contravention of statutory provisions by the Deputy Tax Officer.

Judgement:

The High Court of Madras has held that requirements under section 129 have not been followed by the Deputy Tax Officer and thus, directed to release conveyance/vehicle along with goods contained therein within 24 hours.

Our Comment:

Requirements under section 129 have not been followed by the Deputy Tax Officer. Thus, conveyance/vehicle are to be released along with goods contained therein within 24 hours.

Hrithik Sachdeva, Audit Associate, SW India