Order of seizure of goods in transit passed u/s 129(1) of U.P. Goods and Service Tax Act, 2017 not appealable and therefore, a writ petition is maintainable against it subject to the limitations of judicial review – Allahabad High Court
ABCAUS Case Law Citation:
ABCAUS 2194 (2018) (02) HC
In the instant case, goods in transit were seized vide order passed under Section 129(1) of the U.P. Goods and Service Tax Act, 2017 (the Act). The seizure order of seizure has been passed on two grounds that the goods were being transported from New Delhi and not from Ghaziabad as alleged. Secondly, the value of the goods has been suppressed and according to Kaccha bill found with the consignment, the value of the goods is much higher.
The assessee filed a Writ Petition before the Hon’ble Allahabad High Court challenging the seizure order.
The Revenue, however took a preliminary objection that against the order passed u/s 129(1) of the Act an appeal would lie under Section 107 of the Act and hence the writ is not maintainable.
The Hon’ble High Court observed that as per section 121 of the Act, the non-appealable orders relates to following matters:
(a) an order of the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another officer; or
(b) an order pertaining to the seizure or retention of books of account, register and other documents; or
(c) an order sanctioning prosecution under this Act; or
(d) an order passed under Section 80.
The Hon’ble High Court noted that a simple reading of the aforesaid provision reveals that the legislature has not provided for any appeal against the order if any passed pertaining to the seizure.
The Hon’ble High Court opined that the conjoint reading of Sections 107 and 121 of the Act it is apparent that though all orders passed under the Act by the adjudicating authority are appealable but not the one’s which have been specifically excluded from the purview of appeal under Section 121 of the Act such as orders pertaining to seizure.
In view of the fact that the order impugned was nothing but an order pertaining to seizure above, the Hon’ble High Court rejected the legal objection raised by the Revenue.
In view of the facts and circumstances, the Hon’ble High Court held that the order of seizure of the goods in transit or storage passed under Section 129(1) of the Act is not appealable and therefore, a writ petition is maintainable against it subject to the limitations of judicial review.
Accordingly the writ was admitted.
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