Radha Tradelinks Pvt Ltd. v. State of Gujarat
[Citation -2020-LL-0910-95]

Citation 2020-LL-0910-95
Appellant Name Radha Tradelinks Pvt Ltd.
Respondent Name State of Gujarat
Court HIGH COURT OF GUJARAT AT AHMEDABAD
Relevant Act CGST
Date of Order 10/09/2020
Judgment View Judgment
Keyword Tags goods and services tax • order of confiscation • statutory remedy • payment of tax • bank guarantee • penalty


C/SCA/11067/2020 ORDER IN HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 11067 of 2020 M/S RADHA TRADELINKS PVT LTD Versus STATE OF GUJARAT Appearance: MR VARIS V ISANI(3858) for Petitioner(s) No. 1 MR CHINTAN DAVE, AGP for Respondent(s) No. 1,2 CORAM:HONOURABLE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA Date : 10/09/2020 ORAL ORDER (PER : HONOURABLE CHIEF JUSTICE MR. VIKRAM NATH) 1 By this writ application under Article 226 of Constitution of India, writ applicant has prayed for following reliefs: [A] This Hon ble Court may be pleased to issue writ of certiorari or writ in nature of certiorari or any other appropriate writ, order or direction quashing and setting aside detention order dated 13.08.2020 in Form GST MOV-6 (annexed at Annexure A) and confiscation notice dated 13.08.2020 in Form GST MOV-10 (annexed at Annexure B). [B] This Hon ble Court may be pleased to issue writ of mandamus or writ in nature of mandamus or any other appropriate writ or order directing learned Respondent authorities to forthwith release truck no.TN- 88-A-5400 along with goods contained therein without directing any payment of tax and penalty and/or security and bond. Page 1 of 6 Downloaded on : Sat Mar 13 09:33:08 IST 2021 C/SCA/11067/2020 ORDER [C] Pending notice, admission and final hearing of this petition, this Hon ble Court may be pleased to stay operation of impugned detention / confiscation orders / notices (annexed at Annexure A/B) and this Hon ble Court may be pleased to further direct learned Respondent authorities to forthwith release truck no.TN-88-A-5400 along with goods contained therein; [D] This Hon ble Court may please be directed Respondent Authorities to file and withdraw proceedings initiated u/s. 130 of GST Act without any reasons and any evidence of attempt made by petitioner for avoidance of payment of tax. [E] Ex parte ad interim relief in terms of prayer may kindly be granted; [F] Such further relief(s) as deemed fit in facts and circumstances of case may kindly be granted in interest of justice for which act of kindness your petitioner shall forever pray 2 writ applicant is engaged in business of aracanut, spices, etc. It appears from materials on record that consignment of aracanut was transported from Karnataka so as to reach to Ahmedabad. While goods were in transit, on 13.08.2020 in Vehicle No.TN-88-A- 5400, same came to be intercepted by mobile squad of GST at Songadh Check Post. It appears that at time of seizure and thereafter upon further inquiry many discrepancies were noticed by authority as regards documents etc. 3 We need not go further into facts as this writ application can be disposed of on short ground. Page 2 of 6 Downloaded on : Sat Mar 13 09:33:08 IST 2021 C/SCA/11067/2020 ORDER 4 It appears that initially at time of detention, order under Section 129 of Central/Gujarat Goods and Services Tax Act, 2017 (for short, Act) came to be passed determining amount of tax and penalty to be paid by writ applicant. Simultaneously, notice was issued under Section 130 of Act calling upon writ applicant to show cause as to why goods and conveyance should not be confiscated. Thereafter final order came to be passed of confiscation of goods and vehicle under Section 130 of Act. As final order of confiscation was passed without giving any opportunity of hearing to writ applicant, same came to be quashed by this Court and matter was remanded to authority to pass fresh order after giving opportunity of hearing to writ applicant. 5 matter as on date is at stage of passing appropriate order under Section 130 of Act. In other words, adjudication of confiscation proceedings is going on. 6 Mr. Varis V. Isani, learned counsel appearing for writ applicant, vehemently submitted that detention and seizure itself was illegal as driver of conveyance had with him all valid documents including E-Way bill. Mr. Isani would submit that there is nothing on record to indicate that writ applicant committed breach of any of provisions of Act or Rules. He would submit that goods and conveyance came to be detained in month of August, 2020 and continues to be under Page 3 of 6 Downloaded on : Sat Mar 13 09:33:08 IST 2021 C/SCA/11067/2020 ORDER detention as on date. He prays that detention order dated 13.08.2020 in Form GST MOV-6 and confiscation notice dated 13.08.2020 in Form GST MOV-10 may be quashed and set aside and goods and conveyance may be ordered to be released. 7 On other hand, this writ application has been vehemently opposed by Mr. Chintan Dave, learned Assistant Government Pleader appearing for State respondents. Mr. Dave submits that various irregularities were noticed by authorities concerned at time of seizure and detention of goods and conveyance. Mr. Dave would further submit that further inquiry in matter revealed following: (i) owner / driver / person in charge of goods and conveyance Shri Priyasamy Andi has not tendered any documents for goods in movement. (ii) Prima facie, documents tendered are found to be defective. (iii) genuineness of goods in transit (its quantity etc) and / or tendered documents requires further verification. (iv) E-way Bill not tendered for goods in movement. 7.1 Mr. Dave, learned Assistant Government Pleader, further submitted that if writ applicant is aggrieved in any manner with action taken by GST authority, Page 4 of 6 Downloaded on : Sat Mar 13 09:33:08 IST 2021 C/SCA/11067/2020 ORDER then there is statutory remedy of appeal provided under Section 107 of Act. 8 In such circumstances referred to above, Mr. Dave, prays that as there is no merit in this writ application same may be rejected. 9 Having heard learned counsel appearing for parties and having gone through materials on record, we are of view that we should not interfere at stage of adjudication of confiscation proceedings under Section 130 of Act. adjudication proceedings shall proceed in accordance with law. However, we are inclined to grant some relief to writ applicant so as to protect goods getting damaged, but at same time keeping in mind interest of State also. We direct writ applicant to deposit amount of Rs.1,70,787/- towards tax and penalty with authority concerned and also furnish bank guarantee to tune of Rs.17,07,876/- of any Nationalized bank. We are asking writ applicant to furnish bank guarantee keeping in mind value of goods. value of goods is approximately Rs.34,15,752/-. With view to protect interest of writ applicant as well as State, we direct writ applicant to furnish bank guarantee equivalent to 50% of value of goods, which comes to Rs.17,07,876/-. 10 On deposit of Rs.1,70,787/- towards tax and penalty along with bank guarantee of Rs.17,07,876/- of any Nationalized bank, authority concerned shall release goods and vehicle at earliest. deposit of bank Page 5 of 6 Downloaded on : Sat Mar 13 09:33:08 IST 2021 C/SCA/11067/2020 ORDER guarantee shall abide by final outcome after adjudication. 11 We clarify that we have otherwise not expressed any opinion on merits of case. adjudication proceedings shall be completed on its own merits. 12 With above, this writ application stands disposed of. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) DRASHTI K. SHUKLA Page 6 of 6 Downloaded on : Sat Mar 13 09:33:08 IST 2021 Radha Tradelinks Pvt Ltd. v. State of Gujarat
Report Error