Right to appeal could not be deprived if amount paid for releasing of detained goods: HC

Case Details: Hindustan Steel and Cement v. Assistant State Tax Officer - [2022] 141 taxmann.com 342 (Kerala)

Judiciary and Counsel Details

• • Gopinath P., J.
  • R. Jaikrishna, Narayani Harikrishnan, C.S. Arun Shankar, Anish P. & Vivek Bhat D., Advs. for the Petitioner.

Facts of the Case

The department detained goods and conveyance of the petitioner. The petitioner made payment to get goods and conveyance documents released and an order was issued in Form MOV-09. It decided to file appeal but failed as summary of order/demand in form DRC-07 was not issued. It filed writ petition and contended that it couldn’t be deprived of right to file appeal on ground that amounts were paid and proceedings got concluded and summary of order was not generated.

High Court Held

The Honorable High Court observed that it was responsibility of departmental officer to pass an order and upload summary of order irrespective of whether or not taxpayer opted to make payment to get released their detained goods/conveyance/documents. The provisions of section 129(5) only contemplates that procedure for detention or seizure of goods/conveyance/documents comes to an end if payment would be made but it shall always open for assessee to challenge order if he feels that demand had been illegally raised. Therefore, right to file an appeal could not be deprived merely because culmination of proceedings.