TPJ Carriers Theppala House Vs State of Karnataka (Karnataka High Court)
Summary: The Karnataka High Court considered a writ petition filed by M/s. TPJ Carriers, owner of a 14-wheeler tanker bearing No. KL-40/S-7040, which had been hired by M/s. SVP Petro Products for transporting bulk bitumen. The conveyance was intercepted by the State GST Authorities and proceedings were initiated under Section 129(3) of the CGST/KSGST Act, 2017. A penalty of Rs.23,86,590/- was imposed.
The petitioner, being the transporter, contended that it was entitled to release of the conveyance on payment of Rs.1,00,000/-. The Court noted that this was the lesser amount contemplated under the first proviso to Section 129(6), and recorded that the petitioner had paid the said amount.
The petitioner’s grievance was that although approximately two and a half months had elapsed after the penalty order, the authorities had taken no action for sale of the seized goods. The respondents submitted that the goods had not been brought to sale because the period for filing an appeal might not have expired.
The Court examined Section 129(6), which provides that where the person transporting the goods or the owner fails to pay the penalty within fifteen days from receipt of the order under Section 129(3), the detained or seized goods or conveyance become liable to be sold or otherwise disposed of for recovery of the penalty. The first proviso provides for release of the conveyance upon payment by the transporter of the penalty or one lakh rupees, whichever is less. The second proviso permits reduction of the fifteen-day period where the goods are perishable, hazardous, or likely to depreciate in value.
