Order date: 07 June 2022

Facts:

• The Petitioner, Kapil Hukmichand Kothari, received an Order for copper scrap and the said goods were being transported from Surat (Gujarat) on 25.04.2022 in conveyance which was to be delivered at Gandhinagar (Gujarat). The E-way bill generated was valid for the period from 25.04.2022 to 27.04.2022.
• On 26.04.2022, the authorities inspected the conveyance and were detained even though E-way Bill and Lorry receipts were produced by the driver. However, the goods were detained by the authorities, aggrieved by the act of the authorities the petitioners had filed the petition.
• According to authority there some transactions taken place between the petitioner and with regard to some other party in the years 2017- 18, 2018-19, 2019-20, 2020-21 and were considered fraudulent.
• The petitioners were ready and willing to deposit an amount of Rs. 17 lacs which has been tentatively determined by the authority as penalty amount and to issue bond to the tune of Rs. 65 lacs which is reflected in show cause notice MOV-10 under section 130 of the CGST Act.

Issue:

• Whether the authorities have rights to detain the goods even after all the necessary documents have been produced by the petitioners?

Order:

• The Court relying on the case of Majid Bilalbhai Akbani Proprietor of M/S Imran Impex versus State of Gujarat and others held that it is not in dispute that when the conveyance was intercepted along with the goods, the driver of the conveyance did produce necessary documents which are required under the Act as well as the Rules like invoice, E-way bill, Lorry receipts. 
• On depositing an amount of Rs. 17 lacs and furnishing the bond of Rs. 65 lacs with the respondent Authority, without prejudice to the rights and contentions to be raised before the adjudicating authority in the pending proceedings by the petitioner, the respondent-authority shall release the vehicle and goods in question. 
• The inquiry with respect to Form GST MOV-10 shall proceed further in accordance with law.
• The appeal was partly allowed.