No, the Honorable Calcutta High Court in the case of Kanak Timber House v. Assistant Commissioner of Sales Tax [W.P.A. NO.4729 of 2024 dated 11.03.2024] disposed of the writ petition opining that a person cannot seek the release of the goods by way of filing the writ petition and is required to file application under sub-section (6) of Section 67 of the Central Goods and Services Tax, 2017. The Honorable Calcutta High Court replying upon the judgment of the Honorable Supreme Court in the case of State of Uttar Pradesh v. Kay Pan Fragrance Pvt. Ltd. [Civil Appeal No. 8941 of 2019 dated 22.11.2019] observed that the Assessee in order to seek release of the goods seized is required to invoke the provisions of GST Act. Further, replying upon the judgment of the Honorable Delhi High Court in the case of Best Crop Science Pvt. Ltd. v. Superintendent, CGST, Delhi West and Ors. [WP (C) No. 238 OF 2023 dated 05.09.2023] noted that the prohibitory order cannot be valid for infinite period of time. The Honorable Court opined that the goods seized cannot be released till the time the Petitioner has not filed the application under sub-section (6) of Section 67 of the CGST Act and held that the Court is not inclined to interfere as no application has been filed by the Petitioner with the Respondents for release of goods.
Author’s Comments
Section 67(6) read with Rule 140 provides for provisional release of seized goods under section 67(2) of the Act upon execution of a bond in form INS-04 and furnishing of a security in form of bank guarantee equivalent to the amount of applicable tax, interest and penalty payable. The Provisional release is against own assurance of the taxpayer that the seized goods will be produced when called for by the Authorised officer. There is hardly any reason for the authorised officer to turn down the application for provisional release because seizure is to ‘secure and identify’ details of all secreted articles and not a form of recovery of liability under the Act.
Whenever there is any seizure under section 67(2) or section 129, it is advisable that taxpayers must apply for provisional release of seized goods immediately under section 67(6) or 120(1)(c)
Share this content: