M/S Sanjay Iron Store vs. State Of U.P. And 3 Others
Held
The Court held that the goods and vehicle seized under Section 129(1) of the Uttar Pradesh Goods and Services Tax Act, 2017, can be released in favour of the owner upon furnishing security equivalent to the amount specified under Section 129(1)(a) of the Act. The reasoning was based on the provision allowing for release upon furnishing security. The operative direction was for the petitioner to furnish security in the form of a bank guarantee for the specified amount, upon which the goods and vehicle would be forthwith released.
Facts
The petitioner, M/s Sanjay Iron Store, a registered dealer, had its consignment of goods seized under Section 129(1) of the Uttar Pradesh Goods and Services Tax Act, 2017. A notice under Section 129(3) of the Act was subsequently issued, detailing the proposed tax and penalty amounts based on the value of the seized goods. The petitioner, as the owner of the goods, sought their release along with the vehicle.
Key Issues
1. Whether the goods and vehicle seized under Section 129(1) of the Uttar Pradesh Goods and Services Tax Act, 2017, can be released upon furnishing security of the specified amount? The petitioner argued that the goods and vehicle should be released. The respondent revenue authorities contended that the seizure was valid and the specified tax and penalty were due. The Court was to decide on the procedure for release of seized goods and vehicles under the Act.
Sections Cited
Section 129(1), Section 129(1)(a), Section 129(3)
AI-generated summary — verify with the full judgment below
Court No. - 29 Case :- WRIT TAX No. - 1497 of 2018 Petitioner :- M/S Sanjay Iron Store Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Pooja Talwar Counsel for Respondent :- C.S.C.,A.S.G.I.
Hon'ble Pankaj Mithal,J.
Hon'ble Pankaj Bhatia,J.
Heard learned counsel for the parties.
The consignment of the goods of the petitioner, who is a registered dealer, has been seized under section 129(1) of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the 'Act') and notice under section 129(3) of the Act has also been issued specifying the amount of proposed tax and the penalty on the value of the seized goods.
Since the petitioner is the owner of the goods, the goods can be released in his favour alongwith vehicle on furnishing security of the amount specified under Section 129 (1)(a) of the Act.
In such a situation, we dispose of the writ petition with the direction to the petitioner to furnish security in the form of bank guarantee of the amount specified under Section 129 (1)(a) of the Act. It is provided that as soon as the amount is deposited the aforesaid goods and vehicles shall be released forthwith.
Order Date :- 28.11.2018 Puspendra
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.