Hbs Alloys PVT. LTD. Through Its Director Shri Harsh D Shah vs. State Of Gujarat
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The writ applicant, HBS Alloys Pvt. Ltd., through its Director, filed a writ application challenging notices issued under the GST Act. Specifically, the applicant sought to quash and set aside notices in FORM GST MOV-10 and FORM GST MOV-6, both dated December 20, 2021, and an order dated March 4, 2022, in FORM GST MOV-11 passed under Section 130 of the GST Act. The applicant also sought the release of truck no. GJ-20-T-5665 along with its goods. The High Court noted that a final order of confiscation had already been passed.
Held
The Court held that since a final order of confiscation in FORM GST MOV-11 had been passed, the writ applicant should challenge this order by filing an appeal before the Appellate Authority under Section 107 of the SGST Act. The Court directed the Appellate Authority to hear and dispose of the appeal expeditiously on its merits. It was also open for the writ applicant to file an application for interim relief, either for provisional release of goods under certain conditions or to prevent the auction of goods and conveyance pending the appeal's disposal. The Court further stated that any such interim application should be taken up for hearing forthwith and decided appropriately. The Court also indicated that any delay in filing the appeal, caused by the writ applicant pursuing remedies before the High Court, should be condoned.
Key Issues
1. Whether the High Court should entertain a writ petition when a statutory appeal remedy is available under Section 107 of the SGST Act, especially after a final order of confiscation has been passed? The petitioner argued for the quashing of the detention notices and the order of confiscation, seeking the release of the truck and goods. The petitioner's counsel appeared before the High Court. The revenue's contentions are not explicitly recorded in the judgment, but the court's direction implies the availability and preference for the statutory appeal mechanism. The court's oral order indicates that the petitioner was pursuing remedies before the High Court, and the final order of confiscation had been passed, making the statutory appeal route the appropriate next step.
Sections Cited
Section 107, Section 130
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Cause title — parties, addresses and appearances
ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA)
Draft amendment is allowed. The necessary incorporation shall be carried out at the earliest.
By this writ application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs; “(A) Your Lordships may be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other writ, orders or directions to quash and set aside the impugned notice dated 20.12.20121 in FORM GST MOV-10 (at Annexure-G) as well as impugned notice dated 20.12.2021 in FORM GST MOV-6 (at Annexure-F) (B) Your Lordships may be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other writ, orders or directions to respondent C/SCA/800/2022 ORDER DATED: 20/04/2022 authorities to forthwith release truck no. GJ-20-T- 5665 along with the goods contained therein by quashing and setting aside the detention notices and orders; (BB) Your Lordships may be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other writ, orders or directions to quash and set aside the impugned order dated 04.03.2022 (at Annexure-K) passed in FORM GST MOV-11 under section 130 of GST Act? (C ) Your Lordships may be pleased to grant ex- parte, ad-interim order in favour of the petitioner herein in terms of prayer clause ‘A’ and ‘B’ hereinabove; (CC) During the pendency and final disposal of the present petition, Your Lordships may be pleased to be pleased to stay the operation, implementation and execution of impugned order dated 04.03.2022 (at Annexure-K) passed in FORM GST MOV-11 under section 130 of GST Act and all consequential and incidental proceedings pursuant here to. (D) Pass any such other and/or further orders that may be thought just and proper, in the facts and circumstances of the present case.”
We have heard Mr. Hiren J. Trivedi, the learned counsel appearing for the writ applicant and Mr. Utkarsh Sharma, the learned AGP appearing for the respondents.
It is evident from the draft amendment, referred to above, that the final order of confiscation in FORM GST MOV-11 has already been passed. In such circumstances, we expect the writ applicant to challenge the final order of C/SCA/800/2022 ORDER DATED: 20/04/2022 confiscation by filing an appeal before the Appellate Authority under Section 107 of the SGST Act. If any such appeal is filed, the Appellate Authority shall take it up for hearing expeditiously and dispose of the same on its own merits. It shall also be open for the writ applicant to file an application seeking appropriate interim relief either to provisionally release the goods subject to certain terms and conditions or not to put the goods and the conveyance to auction pending the final disposal of the appeal. If any such interim application is filed, the same shall be taken up for hearing forthwith and decide the same by passing an appropriate order in accordance with law. Since the writ applicant was pursuing his legal remedy before this High Court, delay if any caused in filing
the appeal may be condoned accordingly.
With the aforesaid, this writ application stands disposed of. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) Vahid
Reproduced from the public record of the Gujarat High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.