Shankar Rambhau Ninawe vs. State Of West Bengal And Ors.
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The petitioner, Shankar Rambhau Ninawe, filed a writ petition challenging the refusal of the proper officer to treat him as the owner of goods detained under Section 129(1) of the WBGST/CGST Act, 2017. The petitioner had already paid the penalty under Section 129(1)(a) but the authorities continued to detain the vehicle and goods. The petitioner argued that despite having a remedy of appeal under Section 129(3), the continued detention necessitated approaching the High Court. The State was represented by Mr. Santanu Kumar Mitra and Mr. Subhadip Biswas.
Held
The Court held that at this stage, there was little scope to enter into factual issues. Therefore, it was prudent to permit the petitioner to seek the release of the goods and vehicles by securing the balance amount of penalty as determined by the proper officer, to the extent payable under Section 129(1)(b), given that a part of the penalty under Section 129(1)(a) had already been paid. The Court directed that if the petitioner secures the balance penalty amount by way of fixed deposit receipts from a nationalized bank in their name, endorsed in favour of the respondents, or by way of a bank guarantee from a nationalized bank in favour of the respondents, and undertakes to keep them renewed until the disposal of the appeal, the proper officer shall release the goods and vehicles upon compliance with usual formalities and obtaining necessary indemnity. The Court clarified that if no appeal is filed within three months from the release order, the proper officer can encash the fixed deposits or bank guarantee to satisfy the claim. The writ petition was disposed of with these observations.
Key Issues
1. Whether the proper officer was justified in refusing to treat the petitioner as the owner of the goods detained under Section 129(1) of the WBGST/CGST Act, 2017, despite the petitioner having paid the penalty under Section 129(1)(a)? Petitioner's contention: The petitioner argued that the authorities continued to detain the vehicle and goods even after the payment of the penalty under Section 129(1)(a). While acknowledging the availability of an appeal under Section 129(3), the petitioner approached the High Court due to the ongoing detention. Revenue's contention: The judgment notes that diverse arguments and counter-arguments were made. The State's representative, Mr. Mitra, appeared for the State. The court observed that the proper officer's refusal was based on findings appearing at page 194 of the Act. The court found little scope to enter into factual issues at that stage.
Sections Cited
Section 129, Section 129(1), Section 129(1)(a), Section 129(1)(b), Section 129(3)
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2026
DL-08 Ct. No. 03 Srimanta
In the High Court at Calcutta Constitutional Writ Juri iction Appellate Side
WPA/4166/2026
Shankar Rambhau Ninawe -Vs.- State of West Bengal & Ors.
Ms. Bulbuli Basu …for the petitioner. Mr. Santanu Kumar Mitra, Mr. Subhadip Biswas …for the State.
Challenging the refusal on the part of the proper officer to treat the petitioner as an owner of the goods which had been detained under Section 129(1) of the WBGST/CGST Act, 2017, the instant writ petition has been filed. The petitioner contends that the petitioner has already paid the penalty in terms of Section 129(1)(a) of the said Act, notwithstanding the above, the proper officer has refused release of the vehicle and the goods. According to the learned Advocate for the petitioner though the petitioner has a remedy in the form of an appeal from the order passed under Section 129(3) of the said Act, on merits, since the authorities
2 continue to detain the vehicles and the goods despite the petitioner making payment of penalty, the petitioner has approached this Court.
Mr. Mitra, learned Advocate appears for the State.
Having heard the learned Advocates appearing for the respective parties and though diverse arguments and counter-arguments have been made and noting that the proper officer has refused to treat the petitioner to be an owner of the goods based on his findings as appearing at page 194 of the said Act and since at this stage there is little scope for this Court to enter into factual issues, I am of the view that it shall be prudent at this stage to permit the petitioner to seek release of the goods and vehicles by permitting the petitioner to secure the balance amount of penalty as determined by the proper officer to the extent payable under Section 129(1)(b), inasmuch as a part of the penalty in terms of Section 129(1)(a) of the said Act has already been paid.
Accordingly, in the event the petitioner secures the balance amount of penalty by way of fixed deposit receipts issued by any nationalized Bank
3 in the name of the petitioner and submits the same with the respondents by undertaking to keep the same renewed till disposal of the appeal to be filed by the petitioner by endorsing the same in favour of the respondents or in the alternative to secure the balance amount by way of Bank guarantee executed by any nationalized Bank in favour of the respondents, and to keep the same renewed from time to time until disposal of the appeal, the proper officer upon compliance of usual formalities and upon obtaining necessary indemnity as may be required, release the goods and vehicles in favour of the petitioner. It is made clear if no appeal is filed by the petitioner within further period of three months from the date of order of release, the proper officer shall be at liberty to seek encashment of the fixed deposits and/or encash the bank guarantee and realize the same in protanto satisfaction of its claim against the petitioner.
With the above observations, the writ petition is disposed of.
(Raja Basu Chowdhury, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.