Challenge On Confiscation Order under CGST Act  Dismissed on Availability of Statutory Appeal: Kerala HC Allows To Redeem 331.33 g Gold on Payment of Fine [Read Order]

The High Court of Kerala allowed to redeem 331.33 gram gold on payment of fine in lieu of Confiscation.  The bench found that the challenge on confiscation order under Central Goods and Service Tax (CGST) Act, 2017 was dismissed on the availability of statutory appeal.The court directed that the seized ornaments shall be released to the petitioner immediately on payment of the fine in lieu of confiscation.

M/S. Hameed Jewellers,the petitioner suffered by an order under Section 130 of the CGST / SGST Acts on the finding that the goods were being transported without documents and with ulterior intention to evade tax in contravention of the provisions of the CGST / SGST Acts and Rules. The goods which were gold ornaments weighing 331.33 grams were confiscated and the petitioner was given the option to redeem the ornaments on payment of fine in lieu of confiscation.

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A perusal of the order will show that the fine in lieu of confiscation was fixed as Rs.15,59,239/- (Rs.7,32,800/- towards Central Tax and Rs.7,32,800/towards State Tax). The petitioner challenged the order before the Court, which was however dismissed finding that the petitioner had to avail appellate remedies.

The counsel appearing for the petitioner submitted that the statutory appeal filed by the petitioner thereafter was also dismissed by order and the petitioner is unable to file a further appeal under Section 112 of the CGST / SGST Acts on account of the fact that the Tribunal has not so far been constituted.  Further submitted that the petitioner will file an appeal against the orders before the Tribunal as and when it is constituted and the petitioner may be permitted, in the meanwhile, to redeem the gold on payment of the amount of fine mentioned in the order.

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The bench noticed that the order gives to the petitioner an option of redeeming the confiscated gold of 331.33 grams on payment of fine in lieu of confiscation amounting to Rs.15,59,239/-.

A single bench of Justice Gopinath P disposed of the petition by directing that on the petitioner remitting the sum of Rs.15,59,239/- being the fine in lieu of confiscation imposed on the petitioner vide order, the gold ornaments weighing 331.33 grams seized shall be released to the petitioner.

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Further held that “ It will be open to the petitioner to challenge Ext.P5 order as confirmed by Ext.P7 order before the Tribunal as and when the Tribunal is constituted.”

To Read the full text of the Order CLICK HERE

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