GST: Madras HC Orders to release Detained Vehicle since Proper Officer failed to Issue Notice [Read Order]

The Madras High Court has recently ordered the GST department to release the detained vehicle since the “proper officer” has failed to issue a notice during the proceedings.

Justice Anita Sumanth was considering a writ petition by Tvt. LAF Enterprises, whereby the petitioners contended that the vehicle had been stationed at the Sri Veeraragavar service station that night. On 30.05.2022 at 12.30 a.m. the vehicle was intercepted at Sholavaram by the Deputy Tax Officer, Roving Squad, who upon a perusal of the documents that the driver was carrying arrived at the conclusion that the goods were being re-routed without a proper e-way bill.

However, the department submitted that the interception was based on a statement of the driver.

The department confirmed that no such order of detention has been issued and consequently, the question of service upon the petitioner does not arise.

“That apart, the provisions of Section 129 (3) require the proper officer detaining or seizing the goods to issue a notice specifying the penalty payable and thereafter pass an order within 7 days from the date of service of the notice in relation to the detention/seizure effected,” the Court said.

Granting relief to the petitioner, the Court held that “In the present case, admittedly, no such notice has been issued till date though the seizure has been effected as early as on 30.05.2022. In the aforesaid circumstances, the act of the respondent in insisting that the petitioner retain the vehicle at the present location is in gross contravention of the statutory provisions.”

“The petitioner thus succeeds and is entitled to the relief sought. Since the physical verification report has outlived its purpose as verification is complete, the prayer for a certiorari is unnecessary at this juncture and need not be addressed. However, mandamus as sought for is issued to R2 to release the conveyance in question along with the goods contained, forthwith and in any event, within 24 hours from today,” the Court said.

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