Interim Release Of Goods Can Be Ordered Pending Adjudication Of Notice U/S 130 GST Act In Lieu Of Fine: Kerala High Court
2 months ago

Interim Release Of Goods Can Be Ordered Pending Adjudication Of Notice U/S 130 GST Act In Lieu Of Fine: Kerala High Court

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The Kerala High Court has held that interim release of goods can be ordered pending adjudication of notice under section 130 GST Act in lieu of fine. The department submitted that Section 130 does not contemplate provisional release of goods which are proposed to be confiscated and the department has no authority to release the goods pending adjudication and until the culmination of adjudication, the party from whom the goods were seized cannot claim release of such goods and that legal proceedings cannot be whittled down on grounds of expediency. Further, after the owner of the goods avails the option but refuse to make payment in lieu of confiscation, Section 130 permits the proper officer to withdraw the order of release and hold possession of the goods confiscated.” High Court observed that the provisional release does not in fact result in loss of absolute custody by the Department over the goods seized, as the Department will still have constructive custody. In view of the above, the bench directed the department to release the goods seized to the assessee pending adjudication of show cause notice.

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