M/s PALAK DESIGNER DIAMOND JEWLLERY Versus UNION OF INDIA
GST
2019 (2) TMI 247 – GUJARAT HIGH COURT – [2019] 62 G S.T.R. 282 (Guj), 2019 (21) G. S. T. L. 481 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 29-1-2019
R/SPECIAL CIVIL APPLICATION NO. 16599 of 2018
GST
MS HARSHA DEVANI AND DR A. P. THAKER, JJ.
For The Petitioner (s) : MR HARDIK P MODH (5344)
For The Respondent (s) : MR NIRZAR S DESAI (2117)
ORAL JUDGMENT
(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI)
1. Rule. Mr. Nirzar Desai, learned Senior Standing Counsel waives service of notice of rule on behalf of the respondent.
2. By this petition, the petitioner has challenged the validity of the seizure orders dated 11/12.1.2018 and 14/15.3.2018 and seeks a direction to the respondent to forthwith allow provisional release of the goods seized under the seizure memos dated 11/12.1.2018 and 14/15.3.2018.
3. At the outset, Mr. Hardik Modh, learned advocate for the petitioner submits that he is pressing this petiti
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onal Commissioner of Anti Evasion, GST and Central Excise, to provisionally release the finished goods which belonged to the principal suppliers and had to be returned at the earliest.
5. The officers of the third respondent, once again visited the office of the petitioner on 23.1.2018 to ascertain the value of the seized goods along with an approved valuer, who valued the seized goods at Rs. 4,10,68,644/- and, thereafter, sealed such goods.
6. By a letter dated 24.1.2014, the petitioner informed the respondent that they had paid appropriate amounts of CGST and SGST on the seized goods and penalty equal to 15% of CGST and SGST under the provisions of section 74 (5) of the Act and requested the release of the goods in terms of the provisions of section 67 (6) of the CGST Act.
7. On 14/15.3.2018, the respondents once again searched the premises of the petitioner and seized all the raw materials and finished goods lying on the first, second and third floors under the seizure memo dated
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Court to the provisions of section 67 of the CGST Act and, more particularly, sub-section (6) thereof, which provides that, “the goods so seized under subsection (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be”. Referring to the letter dated 20.3.2018 of the petitioner addressed to the Deputy Commissioner, Anti Evasion, it was pointed out that the petitioner has paid chalan of Rs. 14,16,868/- and had credit of SGST in the electronic credit ledger amounting to Rs. 7,90,793/- as on 20.3.2018. It was submitted that the credit of CGST in the electronic cash ledger has been reversed on 28.1.2019. It was submitted that the petitioner can also provide bank guarantee or bond for removal of the goods seized. Referring to the show cause notice dated 8.1.2019, it was pointed out that in paragr
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directed to furnish the bank guarantee of at least Rs. 1 crore.
12. This Court has considered the submissions advanced by the learned advocates for the respective parties. The petitioner has prayed for provisional release of seized goods under subsection (6) of section 67 of the CGST Act, which lays down that the goods seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be. The manner has been prescribed under rule 140 of the CGST Rules, 2017 which provides that the seized goods may be released on a provisional basis upon execution of a bond for the value of the goods in FORM GST INS-04 and furnishing of a security in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable. 13. Thus the respondents are duly empowered t
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