M/S Arya Traders vs. State Of Gujarat

Held

The Court did not adjudicate the writ application on merits. Based on the statement made by the learned Assistant Government Pleader, the impugned order passed under Section 130 of the Act dated 19th July, 2019, was agreed to be recalled. Fresh proceedings would be initiated in accordance with law, and a fresh order would be passed after giving an opportunity of hearing to the writ applicants, keeping in mind the principles explained in the Synergy Fertichem case. The Court directed the writ applicants to deposit an amount of Rs. 4,15,800/- towards tax and penalty as determined under Section 129 of the Act. Upon deposit of this amount, the goods and conveyance would be released forthwith, subject to the final outcome of the confiscation proceedings. The amount of Rs. 4,15,800/- was clarified to be the amount determined while passing the order of confiscation under Section 130.

Facts

The writ applicants, M/s Arya Traders, approached the Gujarat High Court challenging an order passed under Section 130 of the GST Act (MOV-11 order dated 19.07.2019) and seeking the release of their goods and vehicle without any security. The goods and vehicle had been detained and seized on 09.07.2019 and remained in the possession of the GST authorities. The petitioner sought quashing of the impugned order, a mandamus for the release of goods and vehicle, and costs. The Court noted a previous judgment of the High Court in Synergy Fertichem Pvt. Ltd. & Anr. vs. State of Gujarat & Anr.

Key Issues

1. Whether the impugned order passed under Section 130 of the CGST Act, 2017, is liable to be quashed and set aside in light of the principles laid down in Synergy Fertichem Pvt. Ltd. & Anr. vs. State of Gujarat & Anr.? Petitioner's Argument: The petitioner sought to quash the MOV-11 order and secure the release of their goods and vehicle, implicitly arguing that the order was not in accordance with law or the established precedents of the High Court. They relied on the principles of law as explained in the Synergy Fertichem case. Revenue's Argument: The learned Assistant Government Pleader, after obtaining instructions, stated that the impugned order under Section 130 would be recalled. The revenue agreed to initiate fresh proceedings in accordance with law, pass a fresh order after providing an opportunity of hearing to the writ applicants, and consider the principles from the Synergy Fertichem decision.