M/S Guru Sahai Jewelers vs. Union Of INDIA And 3 Others
Held
The Court held that the case was covered by the order passed by a co-ordinate Bench in Writ Tax No. 1562 of 2018. In that previous order, the Court had directed the release of seized goods belonging to the owner upon furnishing security equivalent to the amount provided under Section 129(1)(a) of the U.P. GST Act, as opposed to the higher amount stipulated under Section 129(1)(b). The reasoning was that since the petitioner was the owner of the goods, the security should be proportionate to that ownership. The Court extended the benefit of this previous order to the present petitioner. Therefore, the operative direction was to release the goods of the petitioner on furnishing security as provided under Section 129(1)(a) of the Act. No issue was expressly left undecided.
Facts
The petitioner, M/s Guru Sahai Jewelers, is the owner and purchaser of goods that were seized under Section 129(1) of the U.P. GST Act. The authority concerned demanded security for the release of the goods as per Section 129(1)(b) of the Act. The petitioner filed a writ petition before the High Court challenging this demand. A co-ordinate Bench of the High Court had previously dealt with a similar case, directing the release of goods upon furnishing security equivalent to the amount provided under Section 129(1)(a) of the Act, considering the petitioner was the owner. The parties in the present case agreed that it was covered by the previous order.
Key Issues
1. Whether the goods seized under Section 129(1) of the U.P. GST Act should be released on furnishing security equivalent to the amount provided under Section 129(1)(a) of the Act, when the petitioner is the owner of the goods. Petitioner's contention: The petitioner, being the owner of the goods, argued that the security demanded should be as per Section 129(1)(a) of the Act, not Section 129(1)(b). They relied on a previous order of a co-ordinate Bench of the High Court in Writ Tax No. 1562 of 2018, which had directed release on furnishing security under Section 129(1)(a) for the owner of the goods. Respondent's contention: The respondents agreed that the case was covered by the order passed in the aforementioned case and extended the benefit of the said order to the petitioner.
Sections Cited
Section 129(1), Section 129(1)(a), Section 129(1)(b)
AI-generated summary — verify with the full judgment below
Court No. - 21 Case :- WRIT TAX No. - 1696 of 2018 Petitioner :- M/S Guru Sahai Jewelers Respondent :- Union Of India And 3 Others Counsel for Petitioner :- Aloke Kumar Counsel for Respondent :- A.S.G.I.,C.S.C.
Hon'ble Pradeep Kumar Singh Baghel,J.
Hon'ble Prakash Padia,J.
Office of the Addl. Solicitor General of India has accepted notice on behalf of the Union of India. Sri C.B. Tripathi, learned counsel has accepted notice on behalf of 2nd,3rd and 4th respondents.
Our attention has been drawn to an order passed by the co- ordinate Bench of this Court in Writ Tax No. 1562 of 2018, wherein following order has been passed- "Heard Sri Aloke Kumar, learned counsel for the petitioner and Sri C.B.
Tripathi, learned special counsel for the respondents.
The petitioner is the purchaser of the goods and as such is the owner. The goods have been seized under Section 129(1) of the U.P. GST Act but in the order of release, security has been demanded according to the provisions of Section 129(1)(b) of the Act.
Since the petitioner is the owner of the goods, we direct the authority concerned to release the goods of the petitioner on the petitioner's furnishing security of the amount equivale
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