M/S Jai Mateshwari Steels PVT. LTD. vs. Commissioner Uttarakhand State G S T Commissionerate Dehradun

Facts

M/s Jai Mateshwari Steels Pvt. Ltd. (appellant) filed two Special Appeals against orders dated 15.09.2022 passed by the learned Single Judge in two writ petitions. The appellant's grievance stems from the confiscation of goods and a vehicle on 17.05.2022. The confiscation order was passed under Section 130 of the Central Goods and Service Tax Act, purportedly based on intelligence that the supplier, M/s Paras Allows, was a fake or non-existent firm. The appellant contended that the invoice and E-way bill were available, tax was duly deposited, and there was no intention to evade tax. The appellant expressed readiness to comply with any terms for the release of the goods and vehicle.

Held

The High Court did not decide the merits of the case. Instead, it disposed of the Special Appeals by directing the respondents to file their response (counter-affidavit) by 01.11.2022, with a copy to the appellant's counsel. The Court requested the learned Single Judge to hear the parties on the aspect of interim relief on 07.11.2022. The writ petitions were listed before the learned Single Judge for consideration on 07.11.2022. No finding was reached on the legality or justification of the confiscation order, nor was any specific provision of law discussed in detail beyond its mention in the facts.

Key Issues

1. Whether the confiscation of goods and vehicle under Section 130 of the Central Goods and Service Tax Act was justified and legal, given the appellant's submission that the invoice and E-way bill were available, tax was deposited, and there was no intention to evade tax, solely based on intelligence regarding the supplier being a fake firm? Contentions: Appellant: The confiscation is unjustified and illegal as the necessary documents (invoice and E-way bill) were produced, tax was deposited, and there was no intent to evade tax. The action was based merely on intelligence about the supplier being a fake firm. The goods and vehicle have been confiscated since 17.05.2022. Respondents: The respondents, through their counsel, indicated they would file a counter-affidavit in the writ proceedings.