M/S. Kanak Alankar vs. Deputy Commissioner Of State Tax,Enforcement Unit,Rourkela
Original PDF →No AI summary yet for this judgment.
Cause title — parties, addresses and appearances
ORDER 13.02.2024
This matter is taken up through hybrid mode.
Mr. Sahoo, learned Senior Counsel appearing on behalf of petitioner while assailing the impugned order dated 29.01.2024 passed by Deputy Commissioner of State Tax, Enforcement Unit, Rourkela (Opposite Party No.1) argues that the petitioner has alternative remedy of statutory appeal against the said order. The operative portion of the impugned order passed under Section 130(2) of the Odisha Goods and Services Tax Act (OGST), 2017, reads as under:
“24. The unaccounted for goods of Rs.1,55,13,150.00 (Rupees One Crore Fifty Five Lakh Thirteen Thousand One Hundred and Fifty only) as found in the place of business of the taxpayer on the date of inspection is proposed to be confiscated u/s. 130(2) of the OGST Act. However, the taxpayer may prefer the option for payment of fine amounting to Rs.62,05,260.00 (Rupees Sixty-Two Lakh Five thousand Two Hundred and Sixty only) in lieu of such Order No. 01. confiscation. The calculation of such fine is reflected in the following table:
Calculation of Leviable fine on seized goods in lieu of confiscation M/s. Kanak Alankar, GSTIN – 21AAFFK2174G1ZQ
ITEM Discrepancy Unit price per gram Total value FINE U/S-130 (2) Discrepancy Unit price per gram Total value CGST SGST Total Gold (grms) 2733.274 5200 142,13,025.00 28,42,605.00 28,42,605.00 56,85,210.00 Silver (grms) 25932.50 50 12,96,625.00 2,59,325.00 2,59,325.00 5,18,650.00 GS(grms) 6427.00 0.55 3,500.00 700.00 700.00 1,400.00 Total
1,55,13,150.00 31,02,630.00 31,02,630.00 62,05,260.00
The taxpayer is liable to make payment of the penalty amounting to Rs.4,65,396.00 (Rupees four lakh sixty five thousand three hundred and ninety-six only) imposed u/s 122 of the OGST Act as per the Section 130(1) of the OGST Act and fine to the tune of Rs.62,05,260.00 (Rupees Sixty-Two Lakh Five Thousand Two Hundred and Sixty only) in lieu of confiscation as per the terms and condition of Demand Notice in Form GST DRC 07 by 15.02.2024. 26. The impugned goods are confiscated and the tax payer is required to pay the above penalty and fine to get the confiscated goods released.”
The penalty and fine have been imposed under section 122 read with sections 130, 130(1) and 130(2) of the Odisha Goods and Services Tax Act, 2017. Mr. Sahoo however submits that in the light of what has been mentioned in the impugned order, the petitioner is required to pay a sum of ₹62,05,260/- in lieu of confiscation of the goods. He contends that impugned order has been passed in total breach of the principles of natural justice and the provision under sub-section (4) of section 130 of the said Act. He has further submitted that in case the petitioner is relegated to the forum of appeal, the appellate authority may be directed
to consider the petitioner’s prayer for release of goods if it complies with the requirement under section 67(6) of the Act.
Without expressing any opinion on learned Senior Counsel’s contention, we dispose of this writ application with liberty to the petitioner to prefer an appeal before the appellate authority. Learned Senior Counsel has vehemently argued that if the appeal is not expeditiously decided there is every likelihood of the goods being disposed of under section 130(7) of the Act which will be to detriment of the appellant’s interest and will seriously prejudice his cause.
In such view of the matter we observe that the appellate authority shall ensure expeditious disposal of the petitioner’s appeal if it is filed within a week from today. The petitioner shall be at liberty to seek any interim order before the appellate authority during the pendency of the appeal. The Court expects that the appellate authority shall look into each aspect of the matter with due promptitude. We make it clear that we have not gone into the merits of the case.
The writ petition is disposed of with the aforementioned observations.
(Chakradhari Sharan Singh) Chief Justice
( Arindam Sinha ) Judge
Sisir/Prasant
Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.