GST Section 129(3) proceedings concludes on deposit of Bank guarantee

By Prapti Raut Goods and Services Tax Judiciary March 3, 2020

TaxGuru Citation: 2020 taxguru.in 825
Case Name: M. M. Sons Vs Union of India (Allahabad High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Allahabad High Court

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M. M. Sons Vs Union of India (Allahabad High Court)

Detention of goods & vehicle- Assessee agreed to deposit equivalent bank guarantee

Sri Aloke Kumar, learned counsel on behalf of the petitioner undertakes that the petitioner shall deposit the bank guarantee of the required amount stipulated in the show cause notice dated 8th March, 2018 within three weeks.

High Court states that if bank guarantee is deposited within prescribed time, then the proceedings taken out under section 129(3) of GST Act shall stand concluded in view of the provisions of section 129(5). But if petitioner fails to deposit the amount in the stipulated time period, High Court’s order shall stand recalled automatically and the authorities shall proceed in accordance with law.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

Proceedings under section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 have been taken out against the petitioner by the respondent No.4 / Assistant Commissioner, State Tax, Mobile Squad Unit-IV, Varanasi. The show cause notice dated 8^th March, 2018 initiating the said proceedings requires the petitioner to deposit a bank guarantee equivalent to the amount stipulated therein.

In case such bank guarantee is deposited within three weeks from today, the proceedings taken out under section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 shall stand concluded in view of the provisions of section 129(5) of the Uttar Pradesh Goods and Services Tax Act, 2017 and the law laid down by the judgment rendered on 7^th February, 2020 by this Court in Writ Tax No. 344 of 2018 (M/s Skipper Limited Vs. Union of India and 3 others).

It is clarified that in case the petitioner fails to deposit the amount in the stipulated time period, this order shall stand recalled automatically and the authorities shall proceed in accordance with law.

The writ petition stands, accordingly, disposed of