Detention of Goods: Writ Petition Dismissed, Appeal Remedy Available
Summary in Key Points:
- Issue: Could the assessee challenge the detention of goods and a vehicle in transit via a writ petition at the notice stage under Section 130, arguing that Section 129 should have been applied?
- Facts: The assessee’s goods and vehicle were detained in transit. The assessee approached the court at the notice stage under Section 130, arguing that invoking Section 130 bypassed the provisions of Section 129.
- Decision: The court held that the assessee had an appropriate statutory alternative remedy of appeal under Section 107. The writ petition was dismissed, with liberty granted to the assessee to approach the Appellate Authority under Section 107.
Important Note: This decision reinforces the principle that when a statutory alternative remedy is available, it should be pursued before invoking writ jurisdiction. The court emphasized the availability of an appeal under Section 107, directing the assessee to utilize that avenue to address their grievances regarding the detention of goods and the applicability of Section 129 versus Section 130. This promotes the orderly resolution of disputes through the established appellate process.
HIGH COURT OF GUJARAT
Vipinkumar Kevalchand Shrishrimal
v.
State of Gujarat
Mrs. Sunita Agarwal, CJ.
and Pranav Trivedi, J.
and Pranav Trivedi, J.
R/SPECIAL CIVIL APPLICATION NO. 123 of 2025
JANUARY 6, 2025
Hirak R. Shah and Jitendra U. Thacker for the Petitioner.
ORDER
Mrs. Sunita Agarwal, CJ.- The present petition has been filed by a person, who claims to be the owner of the seized goods, which were detained along with the vehicle in transit, by invoking the provisions of Section 130 of the Gujarat Goods and Services Tax Act, 2017(in short as ‘the GGST Act’ 2017′)/ Central Goods and Services Tax Act, 2017 (in short as ‘the CGST Act’ 2017′).
2. The petitioner herein has approached this Court at the stage of notice under Section 130 of the GGST Act’ 2017 with the assertion that there is no justification for invoking the provisions of Section 130 of the GGST Act’ 2017 bye-passing the provisions of Section 129 of the GGST Act’ 2017. It is submitted that the notice under Section 130 of the GGST Act’ 2017 can be issued only after the provisions of Section 129 of the GGST Act are invoked and the order of detention/seizure is passed therein.
3. Taking note of the above, we may record that from a proposal at Page No.’18’ of the paper book, it appears that on physical verification of the documents at the time of interception, presented by the driver in-charge of the goods/conveyance, a notice was issued in Form GST MOV-2 dated 01.12.2024 and the order of detention dated 02.12.2024 passed under Section 129(1) of the GGST Act’ 2017 has been passed.
4. Be that as it may, there is complete silence in the writ petition about the proceedings undertaken against the transporter of the goods as the goods were seized in transit in accordance with the provisions of Section 129 of the GGST/CGST Act’ 2017.
5. The prayer made in the writ petition is also to provisionally release the goods as well as vehicle, seized/ detained. We may further note from the prayer made in the writ petition that the petitioner has also challenged the order of detaining and seizure of the goods and the vehicle carrying the goods detained and seized in the transit. The prayer has been made to provisionally release the goods as well as vehicle seized under Section 129 of the GGST Act’ 2017.
6. Considering the above, we find that that appropriate statutory alternative remedy available to the petitioner is to file an appeal under Section 107 of the GGST/CGST Act’ 2017 before the competent appellate authority.
7. We, therefore, dispose of the present petition with a liberty to approach the appellate authority by filing an appeal under Section 107 of the GGST/CGST Act’ 2017. Insofar as the challenge to the notice under Section 130 of the GGST/CGST Act’ 2017, it is open for the petitioner to submit his response before the competent authority.
8. With the above, the writ petition stands disposed of.