M/S Mehta Enterprise vs. State Of Gujarat

Held

The Court acknowledged the withdrawal of the earlier petition for pursuing legal recourse. However, it noted that a new cause of action had arisen with the receipt of the auction notice. The Court found the respondent's approach to be equitable and balanced, and thus decided to provide limited protection to the petitioner. The Court directed the petitioner to prefer an appeal within three days of receiving the order. Upon the petitioner showing willingness to make the minimum required deposit for the release of goods, the authority was directed to decide on the interim release within one week. The Court also ordered that no auction would take place until then, and the entire appeal was to be decided by the respondent within eight weeks. The Court explicitly stated that none of its observations would prejudice either side.

Facts

The petitioner, M/s Mehta Enterprise, challenged the confiscation of goods and conveyance by the respondent State of Gujarat. The petitioner had purchased tobacco, made payments through banking channels, and was transporting 18000 kg of tobacco with a tax invoice and e-way bill to Bihar. The truck was intercepted on 21.09.2022. Following inspection, the vehicle and goods were detained. A notice of confiscation was issued on 23.09.2022, and an order in Form GST MOV-11 was passed. The petitioner had previously approached the High Court by filing Special Civil Application No. 22322 of 2022 but withdrew it to pursue other legal recourse. Subsequently, a confiscation order dated 21.10.2022 in Form GST MOV-11 was passed, and a notice of auction dated 14.12.2022 was issued, leading to the present petition.

Key Issues

1. Whether the High Court should entertain the present Special Civil Application given the prior withdrawal of a similar petition (SCA No. 22322 of 2022) to avail different legal recourse, and if so, what relief can be granted, particularly in light of the subsequent auction notice? Petitioner's Contention: The petitioner argued that while a prior petition was withdrawn, a new cause of action has arisen due to the notice of auction. They sought the quashing of the confiscation and detention orders and the release of the vehicle and goods. They also highlighted that the goods are perishable, necessitating expeditious decision-making. Revenue's Contention: The learned Assistant Government Pleader pointed out the earlier petition where identical relief was sought and was withdrawn voluntarily to pursue legal recourse. They argued that since the assessment order was finalized on 21.10.2022, the petitioner could prefer an appeal by following the procedure of law. The respondent's approach was described as equitable and balanced.