It is the mandate of law that at the time of release, not only the value of the goods but also the penalty as may be payable as per the authorities are liable to be paid for which the owner of the goods may have to execute a bond with security thereof and, as such, in the present case, directing the applicants to execute bond and furnishing Bank Guarantee of the amount mentioned in the said communication cannot be said to be beyond the purview of law.
Section 129, 130 of the CGST Act, 2017 – Goods in Transit — The petitioner filed appeal to release the seized goods in terms of the order dated 15.03.2021. The counsel for the applicants submitted that the authorities are putting unnecessary conditions for release of the seized goods though the applicants are willing to pay the tax on the value of the goods. The Standing Counsel submitted that the imposition of the requirement of payment of penalty by way of bond with security is in view of the specific provisions of Section 67(6) of the Act. The Court observed that it is the mandate of law that at the time of release, not only the value of the goods but also the penalty are liable to be paid for which the owner of the goods may have to execute a bond with security thereof.
Held that:- The Hon’ble High Court directed the applicants to execute a bond and furnish Bank Guarantee. Upon execution of bond and furnishing of Bank Guarantee, the goods shall immediately be released.
It is the mandate of law that at the time of release, not only the value of the goods but also the penalty as may be payable as per the authorities are liable to be paid for which the owner of the goods may have to execute a bond with security thereof and, as such, in the present case, directing the applicants to execute bond and furnishing Bank Guarantee of the amount mentioned in the said communication cannot be said to be beyond the purview of law.
Section 129, 130 of the CGST Act, 2017 – Goods in Transit — The petitioner filed appeal to release the seized goods in terms of the order dated 15.03.2021. The counsel for the applicants submitted that the authorities are putting unnecessary conditions for release of the seized goods though the applicants are willing to pay the tax on the value of the goods. The Standing Counsel submitted that the imposition of the requirement of payment of penalty by way of bond with security is in view of the specific provisions of Section 67(6) of the Act. The Court observed that it is the mandate of law that at the time of release, not only the value of the goods but also the penalty are liable to be paid for which the owner of the goods may have to execute a bond with security thereof.
Held that:- The Hon’ble High Court directed the applicants to execute a bond and furnish Bank Guarantee. Upon execution of bond and furnishing of Bank Guarantee, the goods shall immediately be released.