Ms Kumar Traders vs. Commissioner State Tax Ukgst

Held

The Court, considering the preliminary objection raised by the respondent-State, held that the impugned order dated 02.09.2024 is appealable under Section 107 of the Uttarakhand Goods and Services Tax Act, 2017. Consequently, the Court directed the petitioners to file an appeal before the First Appellate Authority, identified as the Joint Commissioner (Appeals), State Tax Department, Uttarakhand. The Court explicitly stated that the point raised by the petitioners regarding the procedural sequence (Section 129 versus Section 130) is left open to be decided by the Appellate Authority. The writ petition was disposed of on this basis, without delving into the merits of the confiscation or the procedural arguments.

Facts

The petitioners, Ms. Kumar Traders and another, filed a writ petition challenging an order dated 02.09.2024 passed by Respondent No. 2. This order resulted in the confiscation of the petitioners' vehicle and goods for allegedly being transported without proper documentation. The State, as respondent, raised a preliminary objection, asserting that the impugned order is appealable under Section 107 of the Uttarakhand Goods and Services Tax Act, 2017. The petitioners contended that before initiating proceedings under Section 130 of the Act, the authorities should have first resorted to proceedings under Section 129 of the Act, which they claim was not done.

Key Issues

1. Whether the order dated 02.09.2024, confiscating the vehicle and goods, is appealable under Section 107 of the Uttarakhand Goods and Services Tax Act, 2017, as contended by the State? 2. Whether the authorities ought to have initiated proceedings under Section 129 of the Act prior to initiating proceedings under Section 130 of the Act, as argued by the petitioners? Petitioner's Contention: The petitioners argued that the authorities failed to follow the prescribed procedure by not initiating proceedings under Section 129 of the Act before resorting to Section 130. They relied on the principle that procedural steps must be followed sequentially. Revenue's Contention: The respondent-State raised a preliminary objection, arguing that the order dated 02.09.2024 is appealable under Section 107 of the Act, and therefore, the writ petition is not maintainable. They implicitly argued that the appellate authority is the appropriate forum to decide all issues, including procedural ones.