Rifty Vinimay Enterprises Vs State of Gujarat (Gujarat High Court)
Summary: The Gujarat High Court, in Rifty Vinimay Enterprises Vs State of Gujarat, directed the GST authorities to consider and decide an application for provisional release of detained goods and a vehicle under Section 67(6) of the GST Act, 2017, preferably within two weeks of receiving the application. The Division Bench comprising Justice J.B. Pardiwala and Justice Bhargav D. Karia passed the order on 30 January 2020, disposing of the writ petition without examining the merits of the detention or confiscation proceedings.
The petitioner had approached the High Court under Article 226 of the Constitution, seeking quashing of a detention order dated 5 January 2020 issued under Section 129(1) of the GST Act and a confiscation notice dated 16 January 2019, as recorded in the judgment, issued under Section 130 in Form GST-MOV-10. During the hearing, counsel for the petitioner submitted that an appropriate application under Section 67(6) would be filed for provisional release of the goods and conveyance during the confiscation adjudication process. Counsel also stated that the petitioner would approach the competent authority regarding adjudication of the notice under Section 130.
Considering these submissions, the High Court directed the respondent authorities to examine the proposed application for provisional release in accordance with law and decide it as expeditiously as possible, preferably within two weeks from its receipt. The Court did not quash the detention order or confiscation notice, direct unconditional release of the goods, or determine the legality of the alleged GST contravention. The ruling provides procedural relief by requiring timely consideration of provisional release while leaving the substantive confiscation proceedings open for adjudication by the competent authority.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. By this petition under Article 226 of the Constitution of India, the petitioner has prayed for quashing and setting aside the order of detention dated 5th January 2020 passed by the respondent No.2 under Section 129(1) of the GST Act, 2017 and notice issued by the respondent No.2 dated 16th January 2019 under Section 130 of the GST Act in Form GSTMOV10.
2. The learned advocate for the petitioner submits that the petitioner would file an appropriate application under Section 67(6) of the GST Act, 2017 for provisional release of the goods and conveyance during the adjudication process of the notice issued under Section 130 of the GST Act, 2017 by the authority. He further submits that the petitioner will approach before the authority to proceed with the adjudication process under Section 130 of the GST Act, 2017.
3. In view of the above submissions made by the learned advocate for the petitioner, this petition is disposed of by directing the respondents authorities to consider the application to be made by the petitioner for provisional release of the goods and vehicle in accordance with law. The respondents authorities will decide such application as expeditiously as possibly preferably within two weeks from the date of receipt of such application of the petitioner.
4. With the aforesaid, this petition is disposed of. Direct service is permitted.
