M/S Kay Pan Fragrance PVT LTD vs. State Of U.P. And 2 Others
Held
The Court acknowledged the submission made by the learned Additional Advocate General for the State regarding the procedure laid down in Section 67(8) of the Central Goods and Services Tax Act, 2017, read with Rule 141 of the relevant Rules. These provisions govern the release of seized goods that are perishable or hazardous in nature. Rule 141(1) stipulates that if the taxable person pays an amount equivalent to the market price of such goods or the amount of tax, interest, and penalty that is or may become payable, whichever is lower, the goods shall be released forthwith. The Court accepted this submission and directed that the seized goods may be considered for release within the next one week, subject to the petitioner's compliance with the aforementioned legal provisions. The writ petition was disposed of on this basis.
Facts
M/s Kay Pan Fragrance Pvt Ltd (the petitioner) filed a writ petition before the High Court challenging the seizure of its goods. The goods were stated to be perishable and hazardous in nature. The State, represented by the Additional Advocate General, brought to the Court's notice the provisions of the Central Goods and Services Tax Act, 2017, specifically Section 67(8) and Rule 141, which outline the procedure for the release of such seized goods. The State indicated that the goods could be considered for release within one week, subject to compliance with the aforementioned legal provisions.
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, provides an adequate mechanism for the release of seized perishable or hazardous goods, thereby rendering a writ petition maintainable for such relief? Petitioner's contention: The petitioner, by filing a writ petition, sought the release of its seized goods. While not explicitly stated, the filing of the writ implies a grievance regarding the seizure and a need for judicial intervention for their release. Respondent's contention: The State argued that Section 67(8) of the CGST Act, 2017, read with Rule 141, provides a complete procedure for the release of perishable or hazardous goods. This procedure involves the taxable person paying an amount equivalent to the market price of the goods or the potential tax, interest, and penalty, whichever is lower. The State submitted that subject to compliance with these provisions, the seized goods could be considered for release within a week.
Sections Cited
Section 67(8), Rule 141
AI-generated summary — verify with the full judgment below
Court No. - 35 Case :- WRIT TAX No. - 866 of 2019 Petitioner :- M/S Kay Pan Fragrance Pvt Ltd Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Pooja Talwar,Pradeep Agarwal Counsel for Respondent :- C.S.C.,Vaibhav Tripathi Hon'ble Bharati Sapru,J.
Hon'ble Rohit Ranjan Agarwal,J.
Heard learned counsel for the petitioner and learned Additional Advocate General for the State.
It has been brought to notice of the Court that the goods are perishable and hazardous in nature.
Sri Manish Goyal learned Addl. Advocate General has submitted that the Central Goods and Services Tax Act, 2017 provides a complete procedure for release of such goods, as contained in section 67(8) of the Act read with Rule 141 of the relevant Rules, which are quoted herein below: "Section 67(8) . The Government may, having regard to the perishable or hazardous nature of any goods, depreciation in the value of the goods with the passage of time, constraints of storage space for the goods or any other relevant considerations, by notification, specify the goods or class of goods which shall, as soon as may be, after its seizure under sub-section (2), be disposed of by the proper officer in such a man
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