Page 166 - GSTL_2nd April 2020_Vol 35_Part 1

68 GST LAW TIMES [ Vol. 35
REPRESENTED BY : Shri Aloke Kumar, Counsel, for the Petitioner.
Shri Anant Kumar Tiwari, CSC, for the Respondent.
[Order]. - The order dated 4th December, 2019 issued by the Assistant
Commissioner (Incharge) Commercial Tax, Mobile Squad Mughalsarai Unit,
Chandauli is taken in the record.
2. By the order dated 4th December, 2019, the petitioner was required
to furnish a bank guarantee equivalent to the amount of his liability determined
under Section 129 of the Uttar Pradesh Goods and Services Tax Act, 2017 at the
time of seizure of goods and conveyance in transit.
3. It is a subsequent development, which this Court has taken into cog-
nizance for a just adjudication of the controversy. The order dated 4th December,
2019 has been passed in purported compliance of the judgment of the Hon’ble
Supreme Court rendered in the State of Uttar Pradesh and Others v. M/s. Kay Pan
Fragrance Pvt. Ltd. reported in [(2019) 71 NTNDX 409 (SC) = 2019 (31) G.S.T.L.
385 (S.C.)]. The operative portion of the said judgment rendered by the Hon’ble
Supreme Court is set forth hereunder :
“In our opinion, therefore, the orders passed by the High Court which are
contrary to the stated provisions shall not be given effect to by the authori-
ties. Instead, the authorities shall process the claims of the concerned as-
sessee afresh as per the express stipulations in Section 67 of the Act read
with the relevant rules in that regard. In terms of this order, the competent
authority shall call upon every assessee to complete the formality strictly as
per the requirements of the stated provisions disregarding the order passed
by the High Court in his case, if the same deviates from the statutory com-
pliances. That be done within four weeks without any exception.”
4. The order dated 4th December, 2019 while being passed in compli-
ance of the orders of the judgment of the Hon’ble Supreme Court in M/s. Kay
Pan Fragrance Pvt. Ltd. (supra) is under Section 129 of the Uttar Pradesh Goods
and Services Tax Act, 2017 (hereinafter referred to as ‘UPGST Act’). Section 129
of the UPGST Act, 2017 is extracted below for ease of reference :
“129. Detention, seizure and release of goods and conveyances in trans-
it. - (1) Notwithstanding anything contained in this Act, where any person
transports any goods or stores any goods while they are in transit in con-
travention of the provisions of this Act or the rules made thereunder, all
such goods and conveyance used as a means of transport for carrying the
said goods and documents relating to such goods and conveyance shall be
liable to detention or seizure and after detention or seizure, shall be re-
leased, -
(a) on payment of the applicable tax and penalty equal to one
hundred per cent of the tax payable on such goods and, in
case of exempted goods, on payment of an amount equal to
two per cent. of the value of goods or twenty-five thousand
rupees, whichever is less, where the owner of the goods comes
forward for payment of such tax and penalty;
(b) on payment of the applicable tax and penalty equal to the fifty
per cent. of the value of the goods reduced by the tax amount
paid thereon and, in case of exempted goods, on payment of
an amount equal to five per cent. of the value of goods or
twenty five thousand rupees, whichever is less, where the
owner of the goods does not come forward for payment of
such tax and penalty;
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