M/S Honest Enterprises vs. State Of Rajasthan
Held
The Court directed that upon the petitioner depositing the amount demanded vide the order dated November 22, 2022, under protest and reserving their right to file an appeal, the seized vehicle and the goods being transported therein shall be released. The Court reasoned that this course of action would address the petitioner's apprehension of non-release and potential auction while preserving their right to challenge the demand later. The ratio decidendi is that in cases of seizure on suspicion of GST evasion, allowing for deposit under protest and subsequent release of goods and vehicle is a permissible interim measure, provided the statutory right to appeal is preserved. The writ petition was disposed of on these terms.
Facts
The petitioners, M/s Honest Enterprises and its driver, filed a writ petition challenging the seizure of Truck No. GJ-08-Z-6148 and the scrap being transported. The seizure was based on suspicion of GST evasion. Following the seizure, a demand notice/order dated November 22, 2022, was issued by the Deputy Commissioner, State Tax, Circle - Sirohi, demanding Rs. 3,42,200/- as tax and penalty. The petitioner M/s Honest Enterprises offered to deposit this amount but apprehended that the goods and vehicle would not be released and might be auctioned. The respondents, represented by the State of Rajasthan through the Commissioner of State Tax and the Deputy Commissioner, State Tax, Sirohi, stated that no reply was required and the matter could be decided on the existing record.
Key Issues
1. Whether the goods and vehicle seized on suspicion of GST evasion should be released upon deposit of the demanded amount, subject to the petitioner's right to appeal? The petitioner argued that they had offered to deposit the demanded amount and sought the release of the vehicle and goods, apprehending auction. They relied on the principle that deposit under protest should lead to release. The respondents, through their counsel, submitted that they had no objection to the release of the vehicle and goods if the demanded amount was deposited as per the order dated November 22, 2022. No specific statutory provisions or precedents were explicitly mentioned in the arguments presented in the judgment.
Sections Cited
None explicitly mentioned in the judgment text provided.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 432/2023
M/s Honest Enterprises, 3518, Gadh Road Chadottar, Po- Palanpur - 385001, Through Its Proprietor Mr. Hasimkhanliyakatkhan Pathan S/o Liyakatkhan Pathan, Aged 38 Years, Resident Of 31, Old Amanpark, Sukhbhag Road, Palanpur, Banaskantha, Gujarat - 385001. 2. Ameen S/o Mehandi Hasan, Aged About 23 Years, Being The Driver / Person Incharge Of Vehicle No. Gj-08-Z- 6148, Resident Of Mansoorganj, Post Jablupur, Thana Jehangirganj, District Ambedkarnagar, Uttar Predesh. ----Petitioners Versus
State Of Rajasthan, Through The Commissioner Of State Tax, Rgst, Kar Bhawan, Ambedkar Circle, Bhawani Singh Road, C-Scheme, Jaipur.
Deputy Commissioner, State Tax, Circle - Sirohi. ----Respondents For Petitioner(s) : Mr. R.S. Choudhary. For Respondent(s) : Mr. Sandeep Bhandawat. HON'BLE MR. JUSTICE SANDEEP MEHTA HON'BLE MR. JUSTICE KULDEEP MATHUR Order 10/01/2023 Heard. This writ petition is directed against the impugned action of the respondents whereby, the Truck No.GJ-08-Z-6148 with scrap being carried therein were seized. Pursuant to the seizure and in suspicion of GST evasion, a demand notice
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