C/SCA/4043/2020 ORDER IN HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 4043 of 2020 KARAN TOSHNIWAL S/O SUSHIL TOSHNIWAL Versus STATE OF GUJARAT Appearance: MR.AVINASH PODDAR(9761) for Petitioner(s) No. 1,2,3,4 AGP(1) for Respondent(s) No. 1 MR ANKIT SHAH(6371) for Respondent(s) No. 2 NOTICE SERVED BY DS(5) for Respondent(s) No. 3 CORAM:HONOURABLE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA Date : 18/08/2020 ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1 By this writ application under Article 226 of Constitution of India, writ applicants have prayed for following reliefs: (a) Quash press note dated 08.02.2020 at Annexure to this petition; (b) Quash and set aside impugned summon at Annexure Al to this petition; (c) Direct respondents not to take any actions against petitioner being proprietor of M/s Karan Impex exercising powers under Section 69 read with Section 132 without following due procedure of law of assessment and adjudication of alleged evasion of GST as contemplated under Section 61, Section 73 of under Section 74 of Central Goods and Service Tax Act, 2017; Page 1 of 4 Downloaded on : Wed Mar 24 11:11:36 IST 2021 C/SCA/4043/2020 ORDER (d) Pending admission, bearing and final disposal of this petition, stay further proceedings pursuant to summons at Annexure Al to this petition and no coercive action to be taken against petitioners; (e) Grant ad-interim reliefs in terms of prayers above; (f) Any other and further relief deemed just and proper be granted in interest of justice; To award Costs of and incidental to this application be paid by Respondents; 2 We need not delve much into facts of this litigation as this writ application can be disposed of on short ground. 3 goods in question came to be seized and detained under Section 67 of Central Goods and Services Tax Act. Mr. Poddar, learned counsel appearing for writ applicants submitted that he is seeking to confine relief only to extent of getting goods released. He pointed out that his clients have been served with notice under Section 130 of Act calling upon them to show cause as to why goods should not be confiscated. According to Mr. Poddar, notice issued under Section 130 of Act is yet to be adjudicated. He prays that pending confiscation proceedings, goods may be ordered to be released as liability towards tax, penalty and fine has also been determined by competent authority. 4 We pointed out to Mr. Poddar provisions of Section 67(6) of Act. Section 67(6) of CGST Act reads thus: 67 Power of inspection, search and seizure Page 2 of 4 Downloaded on : Wed Mar 24 11:11:36 IST 2021 C/SCA/4043/2020 ORDER ... (6) goods so seized under sub-section (2) shall be released, on provisional basis, upon execution of bond and furnishing of security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as case may be. 5 Thus, even pending confiscation proceedings, competent authority has power to pass order of provisional release of goods subject to certain terms and conditions. 6 We suggested to Mr. Poddar that his clients should prefer appropriate application under Section 67(6) of Act for provisional release of goods. Mr. Poddar submits that his clients will prefer appropriate application for provisional release of goods, however, this Court may direct competent authority to pass appropriate order on such application at earliest. 7 Without going into merits of this case, we dispose of this writ application with following directions: [1] Pending confiscation proceedings, if writ applicants file application under Section 67(6) of Act for provisional release of goods and vehicle, if any, then competent authority shall look into same at earliest and pass appropriate order on such application within period of fifteen days from date of receipt of such application. Page 3 of 4 Downloaded on : Wed Mar 24 11:11:36 IST 2021 C/SCA/4043/2020 ORDER [2] If writ applicants are in any way aggrieved or dissatisfied with order that may be passed by competent authority under Section 67(6) of Act, then it shall be open for them to prefer appeal before appellate authority under Section 107 of Act. 8 With above, this writ application stands disposed of. We clarify that we have otherwise not expressed any opinion on merits of case. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) CHANDRESH Page 4 of 4 Downloaded on : Wed Mar 24 11:11:36 IST 2021 Karan Toshniwal v. State of Gujarat