Page 167 - GSTL_2nd April 2020_Vol 35_Part 1

2020 ] SKIPPER LIMITED v. UNION OF INDIA 69
(c) upon furnishing a security equivalent to the amount payable
under Clause (a) or Clause (b) in such form and manner as
may be prescribed :
Provided that no such goods or conveyance shall be detained
or seized without serving an order of detention or seizure on
the person transporting the goods.
(2) The provisions of sub-section (6) of Section 67 shall, mutatis mutandis,
apply for detention and seizure of goods and conveyances.
(3) The proper officer detaining or seizing goods or conveyances shall is-
sue a notice specifying the tax and penalty payable and thereafter, pass an
order for payment of tax and penalty under Clause (a) or Clause (b) or
Clause (c).
(4) No tax, interest or penalty shall be determined under sub-section (3)
without giving the person concerned an opportunity of being heard.
(5) On payment of amount referred in sub-section (1), all proceedings in
respect of the notice specified in sub-section (3) shall be deemed to be con-
cluded.
(6) Where the person transporting any goods or the owner of the goods
fails to pay the amount of tax and penalty as provided in sub-section (1)
within {fourteen days} of such detention or seizure, further proceedings
shall be initiated in accordance with the provisions of Section 130 :
Provided that where the detained or seized goods are perishable or hazard-
ous in nature or are likely to depreciate in value with passage of time, the
said period of 14 {fourteen days} may be reduced by the proper officer.”
5. A perusal of the provision shows that upon seizure of goods and
conveyances in transit, the Revenue shall issue a notice specifying the tax and
penalty liable to be paid by the assessee and pass an order for payment and tax
and penalty in the manner provided under Clause (a) or Clause (b) or Clause (c)
of Section 129(1) of the UPGST Act, 2017. The provision envisages payment of the
applicable tax and penalty or furnishing security equivalent to the amount paya-
ble. The goods and conveyances are liable to be released immediately upon
payment of such amount or furnishing security of equivalent amount. Further,
upon payment of amount or furnishing of security referred to in Section 129(1) of
the UPGST Act, 2017, the proceedings initiated by the notice under Section 129(3)
of the UPGST Act, 2017 shall be deemed to be concluded in view of Section
129(5) of the UPGST Act, 2017.
6. The scheme of Section 129 of the UPGST Act, 2017 is the most relia-
ble guide of the legislative intent. Section 129 of the UPGST Act, 2017 contem-
plates a comprehensive scheme with a summary procedure for release of goods
and conveyances seized in transit. The legislative intent is to secure revenue in-
terests and equally to ensure expeditious release of the seized goods and convey-
ances. This procedure is distinct from the adjudicatory process of determination
of tax liability. The scheme of Section 129 of the UPGST Act, 2017 thus achieves
the purpose of keeping trade and commercial transactions unhindered by the
adjudicatory process for determination of tax liability, while at the same time
protecting revenue interests and allowing adjudicatory mechanism to run its
course independently.

GST LAW TIMES  2nd April 2020  231