Vts Steels vs. The Assistant State Tax Officer
Held
The Court held that authorities must release the detained goods and conveyance upon the petitioner complying with Section 129(1)(c) by furnishing a bank guarantee. It further directed that the bank guarantee should not be invoked for 30 days after an adverse order, allowing time for appeal.
Facts
Petitioner's goods and conveyance were detained under Section 129 of the CGST/SGST Act. The petitioner offered to furnish a bank guarantee as per Section 129(1)(c) for the release of goods, but the respondent authorities refused to accept it.
Key Issues
Whether GST authorities can refuse to release detained goods and conveyance when the taxpayer offers to furnish security as per Section 129(1)(c) of the CGST/SGST Act.
Sections Cited
Section 129, Section 129(1)(c)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 21ST DAY OF OCTOBER 2022 / 29TH ASWINA, 1944 WP(C) NO. 33537 OF 2022 PETITIONER: 1 VTS STEELS, 74/A, MAIN ROAD, MITHRAPURAM, ADOOR, PATHANAMTHITTA, PIN – 691523 REPRESENTED BY ITS MANAGING PARTNER SRI. VARGHESE M. GEORGE, BY ADVS. AJI V.DEV ALAN PRIYADARSHI DEV P.G.SATHISH KUMAR RESPONDENTS: 1 THE ASSISTANT STATE TAX OFFICER SURVEILLANCE SQUAD NO.II, STATE GST DEPARTMENT, THIRUVANANTHAPURAM -, PIN - 695033 2 THE STATE TAX OFFICER, SURVEILLANCE SQUAD NO.II, STATE GST DEPARTMENT, THIRUVANANTHAPURAM -, PIN - 695033 3 THE COMMISSIONER OF STATE TAX, STATE G.S.T. DEPARTMENT, TAX TOWER, KILLIPPALAM, KARAMANA -P.O, THIRUVANANTHAPURAM-, PIN - 695002 ADV. JASMIN M M, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WPC No.33537 of 2022 2 JUDGMENT Dated this the 21st day of October, 2022 The petitioner faced with proceedings under Section 129 of the CGST/SGST Act, 2017. The grievance of the petitioner is that despite the willingness of the petitioner to comply with the provisions of Section 129 (1
The judgment continues below.
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