M/S Veerabhadra Traders vs. The State Of Andhra Pradesh
Held
The Court directed the release of the seized stock and vehicle in favor of the petitioners, subject to certain conditions, pending the disposal of the 6-A proceedings. For the 1st petitioner, the seized stock is to be released upon furnishing security equivalent to the value of the stock, either personal or third-party immovable property, within two weeks. Similarly, the 2nd petitioner's vehicle is to be released upon furnishing security equivalent to the value of the seized stock in the vehicle, within the same period. Additionally, the petitioners must submit an undertaking that the seized vehicle will not be alienated or mortgaged during the pendency of the 6-A proceedings. The Court's reasoning appears to be influenced by a previous Division Bench order in 'Onteru Bhaskar vs. State of Andhra Pradesh', aiming to balance the petitioners' rights with the respondents' interest. The issue of the legality of the seizure itself was not definitively decided, as the matter was disposed of with directions for release pending further proceedings.
Facts
The petitioners are the owner of seized rice stock (1st petitioner) and the owner of the seized vehicle (2nd petitioner). The 1st petitioner acquired the rice through an open auction conducted by the 2nd respondent on 05.10.2023, being the highest bidder. On 15.11.2023, respondents 3 and 4 seized the stock from the 2nd petitioner's vehicle during transit from Velgode to Bangarapet, Karnataka. The seizure was allegedly done without considering consignment records or drawing a panchanama. Aggrieved by this action, the petitioners filed the present Writ Petition.
Key Issues
1. Whether the seizure of stock and vehicle was justified without proper panchanama and consideration of consignment records, under the relevant provisions of GST law? The petitioners argued that the seizure was arbitrary and illegal, conducted without adhering to proper procedures, specifically mentioning the absence of a panchanama and disregard for consignment records. They contended that their rights were violated by this action. The revenue or State's arguments are not explicitly recorded in the judgment. However, the court's decision to impose conditions for release suggests that the revenue's interest in securing potential tax liabilities was a consideration.
AI-generated summary — verify with the full judgment below
HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION No.31136 of 2023
ORDER: Heard learned counsel for the petitioners and the learned Government Pleader for Civil Supplies and perused the material available on record. 2) The case of the petitioners is that the 1st petitioner is owner of the seized stock and the 2nd petitioner is owner of the seized vehicle. The 1st petitioner brought the rice by participating in the open auction conducted by the 2nd respondent vide notification dated 05.10.2023. The 1st petitioner is the highest bidder in the auction. While so, on 15.11.2023, the 3rd and 4th respondents herein seized the stock from the vehicle of petitioner No.2, during its transit from velgode to Bangarapet of Karnataka, without considering the consignment records and without drawing any panchanama. Aggrieved by the same, the present Writ Petition is filed. 3) However, considering the facts and circumstances of the case and in the light of the latest order passed by a Division Bench of this Court in ‘Onteru Bhaskar vs. State
2 of Andhra Pradesh, represented by its Principal Secretary, Civil Supplies Department and others’1 in our
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