Owner can seek redemption of confiscated goods/conveyances even after confiscation order: HC

Case Details: Shel Singh Purohit v. Commercial Taxes Officer - [2022] 137 taxmann.com 138 (Karnataka)

Judiciary and Counsel Details

• • Krishna S. Dixit, J.
  • K.G. Raghavan, Sr. Counsel and Thirumalesh M., Adv. for the Petitioner. 
  • K. Hemakumar, AGA for the Respondent.

Facts of the Case

The Competent Authority detained goods of petitioner under transport as well as vehicle. The petitioner sent a letter by Speed Post seeking release of the goods in detention on the ground that they were perishable. The authority further issued on petitioner a notice under section 130 for confiscation of goods and vehicle. It filed writ petition against continued detention of the goods and the vehicle, indefinitely.

High Court Held

The Honorable High Court observed that sub-section (2) of section 130 of CGST Act provides for redemption of confiscated goods and conveyances. Even after confiscation order is passed, it is open to owner to seek redemption of confiscated goods/conveyances. If owner comes forward to pay amount comprised in demand notice, goods and conveyances may be released pending conclusion of long drawn confiscation proceedings. Therefore, Competent Authority was directed to release goods and vehicle in detention immediately after ascertaining prima facie ownership and on depositing total amount comprised in notice.