GST--Seizure of Goods

Seizure of Goods or Conveyances Under Transportation : Opportunity of Hearing to the Person Concerned While Taking Recourse Under Section 129 of the Act

Akhilesh Kumar Sah

Recently in case of Premium Traders v. State of U.P and 2 others (WT No. - 582 of 2022), Allahabad High Court had observed that where the Adjudication Authority does not afford any opportunity of hearing to the petitioner despite persuasion made by the petitioner, then such Authority commits a manifest error of law. The Learned Author has discussed this issue along with the Case Law, in this Write up.

1. Introduction

Section 129 of Central Goods and Services Act/UP Goods and Services Tax, 2017(Hereinafter referred to as the Act, in short) deals with the detention, seizure and release of goods and conveyances in transit. In terms of section 129 of the Act, if any person transports any goods, or stores any goods while they are in transit, in contravention of the provisions of the Act or the Rules made thereunder, such goods and conveyance would be liable for seizure and detention, but should be released on payment of the applicable tax and penalty as contemplated under section 129(1)(a) or 129(1)(b), or under section 129(1)(c) of the Act. Subject to the provisions of section 129(2)-(4), there would be conclusion of such proceedings, as mandated under section 129(5) on payment of the applicable tax and penalty as provided under section 129(1)(a) or (b). According to subsection (4) of section 129 of the Act, no tax, interest or penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard.