M/S Mahaveer Trading Company vs. State Of U.P. And 2 Others

Held

The Court acknowledged the submission by the respondent that Section 67(8) of the Central Goods and Services Tax Act, 2017, read with Rule 141 of the relevant Rules, provides a complete procedure for the release of seized goods of a perishable or hazardous nature. Rule 141(1) specifies that if the taxable person pays an amount equivalent to the market price of the goods or the amount of tax, interest, and penalty payable, whichever is lower, the goods shall be released forthwith. The Court, therefore, directed that subject to the petitioner's compliance with these provisions, the seized goods may be considered for release within the next week. The ratio decidendi is that the statutory framework under the CGST Act and Rules adequately addresses the release of perishable and hazardous goods upon fulfillment of prescribed conditions.

Facts

The petitioner, M/s Mahaveer Trading Company, filed a writ petition before the High Court of Allahabad challenging the seizure of goods. The Court was informed that the seized goods were of a perishable and hazardous nature. The respondent, State of U.P. and two others, represented by the Additional Advocate General, submitted that the Central Goods and Services Tax Act, 2017, provides a complete procedure for the release of such goods. The Court considered the relevant provisions of the Act and Rules concerning the disposal and release of seized perishable or hazardous goods.

Key Issues

1. Whether the procedure prescribed under Section 67(8) of the Central Goods and Services Tax Act, 2017, read with Rule 141 of the relevant Rules, is the complete mechanism for the release of seized perishable or hazardous goods? The petitioner's contention, implied by the filing of the writ petition seeking release of goods, is that the seizure and continued detention of perishable and hazardous goods are causing undue hardship and loss, and that a prompt mechanism for their release should be available. The respondent's contention, as submitted by the learned Additional Advocate General, is that Section 67(8) of the CGST Act, 2017, along with Rule 141, provides a comprehensive procedure for the disposal and release of such goods. They rely on these provisions to argue that the law itself outlines the steps to be taken.