The Joint Commissioner Of State Tax(Law) vs. M/S.Velayudhan Gold LLP

Held

The High Court, without delving into the merits due to the non-constitution of the GST Appellate Tribunal, directed the immediate release of the entire seized gold (1647.970 grams) to the assessee. This release was conditional upon two designated partners/relatives executing bonds, undertaking not to alienate their specified immovable properties until the culmination of proceedings before the yet-to-be-constituted Appellate Tribunal.

Facts

An assessee, a wholesale gold dealer, had gold jewellery seized by the Intelligence Officer under Section 67(2) of the CGST/SGST Acts due to a discrepancy between the physical quantity of gold and the delivery challan, attributed to a clerical error. The adjudicating authority ordered confiscation of the entire gold and imposed penalties, but the First Appellate Authority reduced the penalty and fine, restricting it to the quantity not covered by the challan. The assessee sought release of the gold after paying the reduced fine, while the State challenged the appellate order.

Key Issues

The key legal issue was whether seized goods should be released when an appellate authority has partly allowed the assessee's appeal, but the GST Appellate Tribunal (for further appeals) is not yet constituted, and the State challenges the appellate order.