Murari Jewellers Through Its Proprietor Murari Prasad vs. The State Of Jharkhand Through The Secretary Cum Commissioner State Tax Department

Facts

The petitioner, Murari Jewellers, had gold and silver ornaments seized from its premises following a raid conducted under Section 67 of the Jharkhand Goods and Services Tax Act, 2017. An assessment of tax was made based on this seizure, and the petitioner had challenged this assessment before the Appellate Authority, having made a statutory deposit of 10% of the disputed amount. The present writ application was filed by the petitioner seeking the refund of the seized articles. The State, through its counsel, agreed to the provisional release of the goods, subject to the petitioner executing a bond and furnishing sureties as per Section 67(6) of the Act. The petitioner's counsel also agreed to this condition.

Held

The Court held that the seized articles from the petitioner's premises could be provisionally released. This decision was based on the agreement of both parties to follow the procedure prescribed under Section 67(6) of the Jharkhand Goods and Services Tax Act, 2017. The Court directed that the release should occur upon the petitioner's compliance with the execution of a bond and furnishing of sureties. The reasoning was that the Act itself provides a mechanism for provisional release of seized goods, and both the petitioner and the revenue consented to this course of action. The operative direction was for the provisional release of the articles within four weeks from the date of the petitioner executing the bond and furnishing sureties. No issues were expressly left undecided.

Key Issues

1. Whether the seized gold and silver ornaments can be provisionally released to the petitioner, Murari Jewellers, pending the final adjudication of the tax assessment and appeal. The petitioner argued that the seized articles should be released to them. The revenue, represented by the State, contended that the release of goods is permissible under the Act, provided certain procedural requirements are met. Specifically, the revenue pointed to Section 67(6) of the Jharkhand Goods and Services Tax Act, 2017, which outlines the procedure for provisional release upon furnishing of a bond and sureties. Both parties agreed to adhere to this statutory provision.