Garg Oil Traders vs. State Of Punjab And Others

Facts

The petitioner, Garg Oil Traders, is challenging an order (GST MOV-10) concerning goods detained under GST law. The total amount of tax, penalty, and fine in dispute is Rs. 19,42,692/-. The petitioner sought to deposit Rs. 4 Lacs in cash and provide a bank guarantee for the remaining amount to secure the provisional release of the goods. The High Court had previously passed an order on April 10, 2023, which was recalled. A review application was filed with a delay of 69 days, which the Court condoned. The State counsel sought time for further instructions. The petitioner expressed readiness to deposit the cash amount and furnish a bank guarantee.

Held

The Court directed the petitioner to deposit Rs. 4 Lacs in cash and provide a bank guarantee for the remaining penalty amount. The goods are to be released provisionally to the petitioner within 10 days of this order. The respondents are directed to accept the Rs. 4 Lacs cash deposit. The Court also granted the petitioner liberty to file an appeal against the GST MOV-10 (Annexure P-4) in accordance with law, if advised. The Court's reasoning focused on facilitating the provisional release of goods upon partial payment and furnishing of security, while preserving the petitioner's right to challenge the order through a statutory appeal.

Key Issues

1. Whether the petitioner should be permitted to deposit Rs. 4 Lacs in cash and furnish a bank guarantee for the remaining penalty amount to secure the provisional release of goods under the GST law, considering the total disputed amount is Rs. 19,42,692/-. The petitioner argued for provisional release based on their willingness to deposit a substantial portion in cash and provide security for the rest. The respondents (State of Punjab and others) sought time to obtain further instructions. The Court had to decide on the terms for provisional release of goods pending further proceedings or appeal.