Proprietor Kanuji Shambhuji Thakor vs. State Of Gujarat

Held

The Court declined to quash the confiscation order or direct the release of the perishable goods directly. It held that the petitioner should first prefer a statutory appeal under Section 107 of the GST Act against the order passed under Section 130. The Court also clarified that an application for provisional release under Section 67(6) could only be preferred after filing the appeal under Section 107. However, if an appeal is filed, the concerned authority shall immediately take up the application for provisional release and pass an appropriate order within 8 days. The Court explicitly stated that it had not gone into the merits of the matter. The writ application was disposed of with these directions.

Facts

The petitioner, a proprietary concern, filed a writ application challenging an order of confiscation of perishable goods and levy of penalty under Section 130 of the GST Act, passed by Respondent No. 2. The petitioner also sought release of the detained perishable goods and, alternatively, provisional release under Section 67(6) of the Act. The petitioner's counsel argued that the goods were perishable and should be released. The revenue did not file a reply. The Court noted that a final order of confiscation had already been passed.

Key Issues

1. Whether the Court should quash the order of confiscation of perishable goods and levy of penalty under Section 130 of the GST Act and direct the release of the goods, considering their perishable nature? 2. Whether the Court should direct the provisional release of the perishable goods under Section 67(6) of the GST Act? The petitioner argued that the goods were perishable and therefore should be released forthwith. The petitioner also contended that provisional release under Section 67(6) was appropriate. The revenue, represented by the learned Assistant Government Pleader, did not present any arguments on the merits of the case.