Vehicles used for Transporting Seized Goods need not be kept with Dept. during Investigation: Gujarat High Court orders release of Two Trucks [Read Order]

Vehicles - Transporting Seized Goods - Dept -Investigation - Gujarat High Court - taxscan

The Gujarat High Court ordered the release of Trucks seized from office premises of the writ applicants, Surya Roadways.

The writ applicant, Surya Roadways challenged the seizure of the two trucks under Section 129 of the Act, 2017, more particularly when both the trucks were not in transit carrying any goods. Indisputably both the trucks were seized from the office premises of the writ applicant. The department has doubts with regard to some past transactions.

The writ applicant is a transporter and is carrying on business in the name of M/s. Surya Roadways. In the case on hand, we are concerned with two trucks of the ownership of the writ applicant, which came to be seized by the officers of the GST in the purported exercise of powers under Section 129 of the GST Act, 2017.

The seizure of the two trucks of the ownership of the writ applicant is on the basis that in the past these two trucks were used for transporting the goods in contravention of the provisions of the Act and the Rules. In this regard, an inquiry has been initiated and the same is pending as on date. It appears that a summons under Section 70 of the Act was issued to the writ applicant and according to respondent, the writ applicant has not honoured the summons. There is one person named Saunak Desai, against whom allegations are being leveled by the Department of fraud etc. The statement of Mr. Saunak Desai has been recorded and in his statement, the name of the writ applicant has surfaced.

The division bench of Justice J.B.Pardiwala and Ilesh J. Vora observed that at the end of the inquiry or investigation, if anything incriminating surfaces which may warrant issuance of MOV-10 to the writ applicant under Section 130 of the Act, the authority may do so in accordance with law.

However, the court said today, for the purpose of such inquiry or investigation, the two trucks may not be kept in the custody of the department.

The court directed the respondent to release both the trucks on the writ applicant furnishing an undertaking in writing on oath before the concerned authority that till the conclusion of the inquiry or investigation, he shall not transfer the two trucks in favour of any other person or shall not part with the possession of the same or create any encumbrance upon the same.

“It shall be open for the writ applicant to use the two trucks in his normal course of business. We are saying so because in the event if the department deems fit to issue MOV-10 under Section 130 of the Act, 2017, then at least the goods should be secured for that purpose,” the court said.

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