Surojit Das Vs Deputy Commissioner of State Tax (Calcutta High Court)
Calcutta High Court has directed the provisional release of a consignment of areca nuts, despite departmental allegations of a “fake transaction.” The ruling, in the intra-Court appeal Surojit Das Vs Deputy Commissioner of State Tax, mandates the writ petitioner to pay a penalty equal to 200% of the tax in terms of Section 129(1)(a) of the CGST/WBGST Act, with the release being subject to the final outcome of the ongoing writ petition.
The case involves the detention of areca nuts, which the tax department claims are part of a fraudulent transaction involving “fake” consignor and consignee parties. The petitioner, Surojit Das, sought the release of these goods. The initial application before a Single Bench, dated February 3, 2023, in I.A. No. CAN 1 of 2023 in WPA No.24456 of 2022, had sought release conditioned on paying the 200% penalty. The prayers in the main writ petition are also for the release of the goods.
Considering the perishable nature of the goods and the petitioner’s willingness to pay the 200% penalty “without prejudice to his rights,” the Division Bench of the High Court determined that detaining the goods would be “counter productive.” The Court, therefore, allowed the provisional release.
