Smt Rekha Nayak vs. State Of West Bengal And Ors.

Facts

The petitioner, Smt. Rekha Nayak, claims ownership of goods detained by the State GST Authority. The goods and vehicle were intercepted on December 7, 2022, due to an alleged improper/faulty invoice. A show-cause notice under Section 129(3) of the WBGST Act was issued on the same date, determining tax and penalty in respect of the vehicle's driver. The adjudication order indicated the consignment was being penalized under Section 129 of the CGST and WBGST Act, 2017. The petitioner, as the owner, has provided documents, including the tax invoice and e-way bill, in her name. She is willing to pay the determined tax and penalty.

Held

The Court considered the facts and circumstances, noting that the petitioner is the owner of the goods as evidenced by the tax invoice and e-way bill. It also acknowledged the admitted position that the respondent authority had already determined the tax and penalty, and the petitioner was ready to pay it. The Court held that the respondent authority concerned should release the vehicle and goods within 72 hours of the petitioner depositing the determined tax and penalty, subject to factual verification of ownership documents. Furthermore, upon compliance, the authority shall extend the e-way bill's validity period as per law. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the intercepting authority exercised its power within the limited scope prescribed by Section 129(3) of the WBGST/CGST Act, 2017, when determining tax and penalty? The petitioner argued that the authority's power is limited and that an order for payment of tax and penalty should follow the issuance of a notice under Section 129(1). The petitioner contended that the tax invoice and e-way bill clearly show her as the owner of the goods. The revenue or State did not record any specific arguments in the judgment.