Western Carrier India Ltd Vs State of U.P (Allahabad High Court)
The Hon’ble Allahabad High Court in M/s. Western Carrier India Ltd v. State of U.P. and 4 Others [WRIT TAX No. – 1020 of 2023 dated September 15, 2023] held that since the assessee’s goods in transit were accompanied by the necessary documents, including an E-Way bill and invoice, the department should have released the goods and vehicle under Section 129 of the Central Goods and Service Act, 2017 (“the CGST Act”).
Facts:
M/s. Western Carrier India Ltd (“the Petitioner”) is engaged in the business of providing carrier services for the transportation of goods. The Petitioner has filed a writ petition praying for the release of the vehicle and goods seized by the Revenue Department (“the Respondent”) as the required amount of the penalty has been paid as per the terms and conditions stipulated in Section 129(1)(a) of the CGST Act.
The Petitioner relying upon the clarification issued in Circular No. 76/50/2018-GST dated December 31, 2018 contended that either the consignor or consignee would be the deemed owner of the goods transported, and the Respondent has erred in imposing penalty on the Petitioner. It was also contended that the Petitioner has the paid amount of penalty and fulfilled the conditions as stipulated in Section 129(1)(b) of the CGST Act.
The Respondent contended that the Petitioner has the right to avail alternative remedy of filing an appeal under Section 107 of the CGST Act for the release of vehicle and goods.
Issue:
Whether the Revenue Department can seize the goods and vehicle even after payment of penalty as per the terms and conditions stated in Section 129(1) of the CGST Act?
Held:
The Hon’ble Allahabad High Court in WRIT TAX No. – 1020 of 2023 held as under –
