Madras HC orders to release Vehicle Detained u/s 129 of GST on Payment of  Penalty [Read Order]

In a significant case, the Madras High Court (HC) ordered to release of a Vehicle Detained under section 129  of the Goods and Services Tax Act, 2017  (GST) on payment ofpenalty.

Kramski Stamping and MoldingIndis Private Ltd, the petitioner challenged the order dated 06.02.2023 passed by the respondent under Section 129 of the  Goods and Services Tax Act, 2017  under which the petitioner has been called upon to pay a penalty of Rs.47,79,721/-, within a period of seven days from the date of receipt of the impugned order, failing which, the respondent has informed the petitioner that action under Section 130 of the GST Act, 2017 shall be initiated against them.

The petitioner's vehicle along with its goods was intercepted by the respondent. The respondent has inspected the goods in movement under the provisions of sub-section 3 of Section 68 of the Central Goods and Services Tax Act, 2017, read with sub-section (3) of Section 68 of the State / Union Territory Goods and Services Tax Act

Based on the above inspection report, the goods and conveyance used by the petitioner for the movement of the goods were detained under sub-section (1) of Section  129 of the Central Goods and Services Tax Act, 2017  read with sub-section (3) of Section 68 of the State / Union Territory Goods and Services Tax Actby issuing the order of detention in Form GST MOV-06 and the same was served on the person in charge of the conveyance on 01.02.2023.

Under the impugned order, the petitioner has been directed to pay a penalty of Rs.47,79,721/-, forthwith not later than seven days from the date of receipt of the order, failing which, action under Section 130 of the G.S.T. Act, 2017 has been contemplated against the petitioner. Aggrieved by the impugned order, the petitioner has filed this writ petition seeking for release of the detained goods and conveyance.

Section 129 of the CGST Act, 2017 specifies&indicates that it provides for the detention, seizure and release of goods and conveyances in transit; on the other hand Section 130 talks about the confiscation of goods or conveyances and levy of penalties.

Justice Abdul Quddhose held that the only relief that can be granted to the petitioner is to permit them to file a statutory appeal, if aggrieved by the impugned order before the statutory Appellate Authority as per the provisions of Section 107 of G.S.T. Act, 2017.

The Court directed the respondent to consider the petitioner's application as and when it is filed seekingfor provisional release of the conveyance on payment of the penalty amount of Rs.1,00,000/- as per the provisions of Section 129(6) of the G.S.T. Act, 2017.

To Read the full text of the Order CLICK HERE

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