M/S A.R Traders vs. State Of Punjab And Others

Facts

The petitioner, M/s. A.R. Traders, filed a writ petition seeking the release of goods and a vehicle detained by order for physical verification in Form GST MOV-2 dated 27.04.2023. The respondents, the State of Punjab and others, through the Additional Advocate General, informed the Court that a Form MOV-11 had been issued on 15.05.2023, assessing a fine of Rs. 4,55,636/-. The petition was filed before the High Court of Punjab and Haryana at Chandigarh.

Held

The Court disposed of the petition by granting the petitioner liberty to furnish a bank guarantee equivalent to the assessed fine amount of Rs. 4,55,636/- to the respondents. Upon furnishing the bank guarantee, the petitioner would be entitled to the provisional release of the goods and vehicle. Furthermore, the petitioner was granted liberty to file an appeal against the order of MOV-11 dated 15.05.2023 in accordance with the law. The Court did not delve into the merits of the detention or the assessment of the fine, focusing instead on providing a procedural mechanism for the release of the goods and vehicle pending further adjudication.

Key Issues

1. Whether the petitioner is entitled to the release of goods and vehicle detained for physical verification under GST law? (Mixed question of law and fact, turning on the provisions related to detention and release of goods and vehicles under the GST Act). Petitioner's contention: The petitioner sought the release of the detained goods and vehicle. No specific arguments were recorded in the judgment regarding the grounds for release or against the detention itself, beyond the prayer for release. Revenue's contention: The revenue, represented by the State Tax Officer, had issued a notice (MOV-11) assessing a fine of Rs. 4,55,636/-. The revenue's position was implicitly that the detention was justified pending the resolution of the tax liability.