Court :
Calcutta High Court
Brief :
The Hon'ble Calcutta High Court in the case of Kanak Timber House v. Assistant Commissioner of Sales Tax [W.P.A. NO. 4729 of 2024 dated March 11, 2024] disposed of the writ petition, thereby holding that, a person cannot seek the release of the goods by way of filing writ petition and is required to file application under sub-section (6) of Section 67 of the Central Goods and Services Tax Act, 2017 ("the CGST Act").
Citation :
W.P.A. NO. 4729 of 2024 dated March 11, 2024
The Hon'ble Calcutta High Court in the case of Kanak Timber House v. Assistant Commissioner of Sales Tax [W.P.A. NO. 4729 of 2024 dated March 11, 2024] disposed of the writ petition, thereby holding that, a person cannot seek the release of the goods by way of filing writ petition and is required to file application under sub-section (6) of Section 67 of the Central Goods and Services Tax Act, 2017 ("the CGST Act").
Search and Seizure proceedings were conducted by the Revenue Department ("the Respondent") at Kanak Timber House ("the Petitioner") registered place of business. Thereafter, prohibitory order dated March 25, 2023 ("the Impugned Order") was issued under sub-section (2) of Section 67 of the CGST Act. Further, a show cause notice under Section 122 of the CGST Act was issued for which reply was filed by the Petitioner. Also, the Petitioner requested the Respondent to release the stock of timber which was seized and covered under the Impugned Order.
Aggrieved by the Impugned Order passed, the Petitioner filed a writ petition before the Hon'ble High Court.
Whether the Petitioner is required to file application under sub-section (6) of Section 67 of CGST Act for release of goods seized?
The Hon'ble Calcutta High Court in W.P.A. NO. 4729 of 2024 held as under:
Sub-section (6) of Section 67 of the CGST Act:
Section 67: Power of Inspection, search and seizure
(6) The goods so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be.
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