Seized goods are not liable to be released automatically on payment of pre-deposit amount: HC

Case Details: TCI Freight v. Assistant Commissioner (ST) - [2022] 143 taxmann.com 115 (Madras)

Judiciary and Counsel Details

• • Dr Anita Sumanth, J.
  • Mrs Aparna Nandhakumar, Rajasekar & P. Rajkumar for the Petitioner.
  • C. Harsha Raj & V. Prashanth Kiran for the Respondent.

Facts of the Case

The vehicle and goods transported in vehicle were detained by department. The owner of goods didn’t respond to show cause notice and thereafter the order demanding tax and penalty was passed. The petitioner filed writ petition to quash the detention order. It submitted that the vehicle and goods shall be released as it had filed appeal and made pre-deposit.

High Court Held

The Honorable High Court noted that Section 107(6) of CGST Act, 2017 requires the appellant to make a pre-deposit and thereafter the recovery proceedings for the remaining amount shall be stayed. The question of release of goods will have to be decided by appellate authority upon the strength of case made out by assessee including prima facie case, financial stringency and balance of convenience. But, it can’t be said that the seized goods would become liable to be released automatically after payment of pre-deposit.