Goel Metal Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court disposed of a writ petition filed by Goel Metal, challenging provisions relating to provisional release of seized goods under Section 67(6) of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner sought, among other reliefs, declarations that Section 67(6) was constitutionally unsustainable, that the phrase “on a provisional basis” should not apply where tax, interest and penalty had been fully discharged, and that Rule 140 of the CGST Rules, 2017 was unsustainable for not providing a mechanism for permanent vacation of seizure.
The petitioner also challenged a Show Cause Notice dated 10.06.2026 issued under Section 130 of the CGST Act, as well as the seizure of allegedly unaccounted goods under Section 67(2) on 18.12.2025. It sought declarations that confiscation and penalty proceedings initiated after conclusion of proceedings under Section 74A(9) were without jurisdiction.
The Court noted that Section 67 deals with inspection, search and seizure, and that sub-section (6) provides for provisional release of seized goods upon execution of a bond and furnishing of security. The petitioner submitted that the latter part of Section 67(6) contemplated provisional release upon payment of applicable tax, interest and penalty and that such an order could be passed only under Section 74A(9).
