Karnataka High Court

M/S Quadri And Company vs Assistant Commissioner Of Commercial ... on 19 December, 2023

Author: S.Sunil Dutt Yadav

Bench: S.Sunil Dutt Yadav

                                               -1-
                                                          NC: 2023:KHC-D:14861-DB
                                                     WA No. 100629 of 2023 c/w
                                                         WA No. 100630 of 2023,
                                                         WA No. 100633 of 2023,
                                                         WA No. 100634 of 2023,
                                                         WA No. 100635 of 2023,
                                                        WA No. 100636 of 2023


                        IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
                           DATED THIS THE 19TH DAY OF DECEMBER, 2023
                                            PRESENT
                          THE HON'BLE MR JUSTICE S.SUNIL DUTT YADAV
                                               AND
                           THE HON'BLE MR JUSTICE VIJAYKUMAR A.PATIL
                            WRIT APPEAL NO. 100629 OF 2023 (T-RES)
                                              C/W
                                WRIT APPEAL NO. 100630 OF 2023
                                WRIT APPEAL NO. 100633 OF 2023
                                WRIT APPEAL NO. 100634 OF 2023
                                WRIT APPEAL NO. 100635 OF 2023
                                WRIT APPEAL NO. 100636 OF 2023

                   IN WA.NO. 100629/2023
                   BETWEEN

                          M/S QUADRI AND COMPANY
                          A PROPRIETARY CONCERN
Digitally signed
                          REPRESENTED HEREIN BY ITS PROPERIOTOR
by JAGADISH T
R
                          MR. NAFIS C/O IZAZ AHMED
Date:
2023.12.20                HAVING ADDRESS AT GUPHS
10:41:07 +0530
                          MANDAGADDE 1, 5, GAFFOR KHAN COMPLEX
                          SHIVAMOGGA THIRTHAHALLI, N.H. 169-A ROAD
                          NEAR LINGAPURA BUS STAND, LINGAPURA VILLAGE,
                          MANDAGADDI HOBLI, LINGAPURA,
                          SHIVAMOGGA 577220.
                                                                   ...APPELLANT
                   (BY SRI. BHARAT RAICHANDANI, ADVOCATE FOR
                   SRI. GANGADHAR S. HOSAKERI AND D.M. MALLI, ADVOCATES)
                   AND

                   1.     COMMERCIAL TAX OFFICER (ENFORCEMENT-10)
                          HUBBALLI, NAVANAGAR HUBBALLI 580025,
                          TQ. HUBBALLI, DIST. DHARWAD.
                            -2-
                                      NC: 2023:KHC-D:14861-DB
                                 WA No. 100629 of 2023 c/w
                                     WA No. 100630 of 2023,
                                     WA No. 100633 of 2023,
                                     WA No. 100634 of 2023,
                                     WA No. 100635 of 2023,
                                    WA No. 100636 of 2023




2.    THE JOINT COMMISSIONER OF COMMERCIAL TAX (APPEALS)
      DHARWAD DIVISION,
      HUBBALLI VANIJYA THERIGE BHAVANA,
      NAVANAGAR HUBBALLI 580025.

3.    ASSISTANT COMMISSIONER OF COMMERCIAL TAXES,
      (ENFORCEMENT)-01, SOUTH ZONE
      VANIJYA THERINGE KARYALAYA -2
      NATIONAL GAMES VILLAGE COMPLEX
      EJIPUR, BENGALURU 560047.

4.    COMMISSIONER OF COMMERCIAL TAXES
      STATE OF KARNATAKA 1ST FLOOR,
      VANIJYA THERIGE KARYALAYA KALIDASA MARG
      GANDHI NAGAR, BENGALURU-560009.

5.    STATE OF KARNATAKA
      R/BY ITS PRINCIPAL SECRETARY- FINANCE DEPARTMENT
      MINISTRY OF FINANCE, GOVERNMENT OF KARNATAKA
      VIDHANASOUDHA BENGALURU-560001.
                                             ...RESPONDENTS
(BY SRI. GANGADHAR J.M, AAG A/W
    SMT. GIRIJA HIREMATH, HCGP)

     THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH
COURT ACT, 1961, PRAYING THIS HON'BLE COURT TO
SET ASIDE THE IMPUGNED INTERIM ORDER DATED 25.09.2023
PASSED BY LD. SINGLE JUDGE IN THE INTERESTS OF JUSTICE FOR
RELYING UPON THE RESTATEMENT AND REAPPRAISAL OF
TRANSACTION VALUE BY RESPONDENT NO.3 AND ETC.,

IN WA.NO. 100630/2023
BETWEEN

     M/S QUADRI & COMPANY
     A PROPRIETARY CONCERN
     REPRESENTED HEREIN BY ITS PROPERIOTOR
     MR. NAFIS C/O IZAZ AHMED
     HAVING ADDRESS AT GUPHS
     MANDAGADDE 1, 5, GAFFOR KHAN COMPLEX
                             -3-
                                       NC: 2023:KHC-D:14861-DB
                                  WA No. 100629 of 2023 c/w
                                      WA No. 100630 of 2023,
                                      WA No. 100633 of 2023,
                                      WA No. 100634 of 2023,
                                      WA No. 100635 of 2023,
                                     WA No. 100636 of 2023


      SHIVAMOGGA THIRTHAHALLI N H 169-A ROAD
      NEAR LINGAPURA BUS STAND
      LINGAPURA VILLAGE MANDAGADDI HOBLI,
      LINGAPURA SHIVAMOGGA 577220.
                                                  ...APPELLANT
(BY SRI. BHARAT RAICHANDANI, ADVOCATE FOR
SRI. GANGADHAR S. HOSAKERI AND D.M. MALLI, ADVOCATES)
AND

1.     COMMERCIAL TAX OFFICER (ENFORCEMENT-01)
       ROOM NO. 119, ZILL ADALITH BHAVANA,
       HUBBALLI ROAD, GADAG,
       TQ GADAG, DIST GADAG.

2.     THE JOINT COMMISSIONER OF COMMERCIAL TAX (APPEALS)
       DHARWAD DIVISION,
       HUBBALLI VANIJYA THERIGE BHAVANA,
       NAVANAGAR, HUBBALLI 580025.

3.     COMMISSIONER OF COMMERCIAL TAX,
       STATE OF KARNATAKA 1ST FLOOR,
       VANIJYA THERIGE KARYALAYA, KALIDASA MARG
       GANDHI NAGAR, BENGALURU-560009.

4.    STATE OF KARNATAKA
      R/BY ITS PRINCIPAL SECRETARY- FINANCE DEPARTMENT
      MINISTRY OF FINANCE GOVERNMENT OF KARNATAKA
      VIDHANA SOUDHA BENGALURU-560001.
                                             ...RESPONDENTS
(BY SRI. GANGADHAR J.M, AAG A/W
    SMT. GIRIJA HIREMATH, HCGP)

      THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH
COURT ACT, 1961, PRAYING THIS HON'BLE COURT TO, SET ASIDE
THE IMPUGNED INTERIM ORDER DATED 25.09.2023 IN WP.NO.
104992/2023 (T-RES) PASSED BY LEARNED SINGLE JUDGE IN THE
INTERESTS OF JUSTICE FOR RELYING UPON THE RESTATEMENT AND
REAPPRAISAL OF TRANSACTION VALUE BY RESPONDENT NO.2 AND
ETC.,
                             -4-
                                       NC: 2023:KHC-D:14861-DB
                                  WA No. 100629 of 2023 c/w
                                      WA No. 100630 of 2023,
                                      WA No. 100633 of 2023,
                                      WA No. 100634 of 2023,
                                      WA No. 100635 of 2023,
                                     WA No. 100636 of 2023


IN WA.NO. 100633/2023
BETWEEN

      M/S QUADRI & COMPANY
      A PROPRIETARY CONCERN
      REPRESENTED HEREIN BY ITS PROPERIOTOR
      MR. NAFIS C/O IZAZ AHMED
      HAVING ADDRESS AT GUPHS
      MANDAGADDE 1, 5, GAFFOR KHAN COMPLEX
      SHIVAMOGGA THIRTHAHALLI N.H. 169-A ROAD
      NEAR LINGAPURA BUS STAND,
      LINGAPURA VILLAGE MANDAGADDI HOBLI,
      LINGAPURA SHIVAMOGGA 577220.
                                               ...APPELLANT
(BY SRI. BHARAT RAICHANDANI, ADVOCATE FOR
SRI. GANGADHAR S. HOSAKERI AND D.M. MALLI, ADVOCATES)

AND

1.     COMMERCIAL TAX OFFICER (ENFORCEMENT-01)
       ROOM NO. 119 ZILLA, ADALITH BHAVANA
       HUBBALLI-580025
       TQ. HUBBALLI DIST. DHARWAD.

2.     THE JOINT COMMISSIONER OF COMMERCIAL TAX (APPEALS)
       DHARWAD DIVISION,
       HUBBALLI VANIJYA THERIGE BHAVANA
       NAVANAGAR HUBBALLI 580025.

3.     ASSISTANT COMMISSIONER OF COMMERCIAL TAXES
       (ENFORCEMENT-01) SOUTH ZONE,
       VANIJYA THERINGE KARYALAYA -2
       NATIONAL GAMES VILLAGE COMPLEX
       EJIPUR BENGALURU 560074.

4.     COMMISSIONER OF COMMERCIAL TAXES
       STATE OF KARNATAKA 1ST FLOOR,
       VANIJYA THERIGE KARYALAYA KALIDASA MARG
       GABDHINAGAR, BENGALURU-560009.

5.     STATE OF KARNATAKA
       R/BY ITS PRINCIPAL SECRETARY- FINANCE DEPARTMENT,
                             -5-
                                       NC: 2023:KHC-D:14861-DB
                                  WA No. 100629 of 2023 c/w
                                      WA No. 100630 of 2023,
                                      WA No. 100633 of 2023,
                                      WA No. 100634 of 2023,
                                      WA No. 100635 of 2023,
                                     WA No. 100636 of 2023


      MINISTRY OF FINANCE GOVERNMENT OF KARNATAKA
      VIDHANASOUDHA BENGALURU-560001.
                                           ...RESPONDENTS
(BY SRI. GANGADHAR J.M, AAG A/W
    SMT. GIRIJA HIREMATH, HCGP)

     THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH
COURT ACT, 1961, PRAYING THIS HON'BLE COURT TO, SET ASIDE
THE IMPUGNED INTERIM ORDER DATED 25.09.2023 AND 10/10/23
PASSED IN WP NO.104982/2023 (T-RES) PASSED BY LEARNED
SINGLE JUDGE IN THE INTERESTS OF JUSTICE FOR RELYING UPON
THE RESTATEMENT AND REAPPRAISAL OF TRANSACTION VALUE BY
RESPONDENT NO.3. AND ETC.,

IN WA.NO. 100634/2023
BETWEEN

      M/S QUADRI & COMPANY
      A PROPRIETARY CONCERN
      REPRESENTED HEREIN BY ITS PROPERIOTOR
      MR. NAFIS C/O IZAZ AHMED
      HAVING ADDRESS AT GUPHS
      MANDAGADDE 1, 5, GAFFOR KHAN COMPLEX
      SHIVAMOGGA THIRTHAHALLI N.H. 169-A ROAD
      NEAR LINGAPURA BUS STAND,
      LINGAPURA VILLAGE MANDAGADDI HOBLI,
      LINGAPURA SHIVAMOGGA 577220.
                                                ...APPELLANT
(BY SRI. BHARAT RAICHANDANI, ADVOCATE FOR
    SRI. GANGADHAR S. HOSAKERI AND D.M. MALLI, ADVOCATES)
AND

1.     ASSISTANT COMMISSEIONER OF COMMERCIAL TAX
       (ENFORCEMENT) NEAR GURU BHAVAN
       RAJENDRANAGAR, HAVERI,
       TQ. HAVERI, DIST. HAVERI-581110.

2.     THE JOINT COMMISSIONER OF COMMERCIAL TAX (APPEALS)
       DHARWAD DIVISION,
       HUBBALLI VANIJYA THERIGE BHAVANA,
       NAVANAGAR HUBBALLI 580025
                             -6-
                                       NC: 2023:KHC-D:14861-DB
                                  WA No. 100629 of 2023 c/w
                                      WA No. 100630 of 2023,
                                      WA No. 100633 of 2023,
                                      WA No. 100634 of 2023,
                                      WA No. 100635 of 2023,
                                     WA No. 100636 of 2023


3.    THE JOINT COMMISSIONER OF COMMERCIAL TAX OFFICER
      (ENFORCEMENT), 2ND FLOOR
      NAVANAGAR HUBBALLI-580025.

4.    COMMISSIONER OF COMMERCIAL TAX
      STATE OF KARNATAKA 1ST FLOOR
      VANIJYA THERIGE KARYALAYA
      KALIDASA MARG,
      GANDHINAGAR, BENGALURU-560009.

5.    THE STATE OF KARNATAKA
      R/BY ITS PRINCIPAL SECRETARY- FINANCE DEPARTMENT
      MINISTRY OF FINANCE GOVERNMENT OF KARNATAKA
      VIDHANASOUDHA BENGALURU.
                                             ...RESPONDENTS
(BY SRI. GANGADHAR J.M, AAG A/W
    SMT. GIRIJA HIREMATH, HCGP)

      THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH
COURT ACT, 1961, PRAYING THIS HON'BLE COURT TO, SET ASIDE
THE IMPUGNED INTERIM ORDER DATED 25.09.2023 PASSED IN
WP NO.104995/2023 (T-RES) PASSED BY LEARNED SINGLE JUDGE
IN THE INTERESTS OF JUSTICE AND EQUITY ETC.,

IN WA.NO. 100635/2023
BETWEEN

     M/S QUADRI AND COMPANY
     A PROPRIETARY CONCERN
     REPRESENTED HEREIN BY ITS PROPERIOTOR
     MR NAFIS C/O IZAZ AHMED
     HAVING ADDRESS AT GUPHS
     MANDAGADDE 1, 5, GAFFOR KHAN COMPLEX
     SHIVAMOGGA THIRTHAHALLI N H 169-A ROAD
     NEAR LINGAPURA BUS STAND, LINGAPURA VILLAGE
     MANDAGADDI HOBLI, LINGAPURA
     SHIVAMOGGA 577220.
                                                ...APPELLANT
(BY SRI. BHARAT RAICHANDANI, ADVOCATE FOR
    SRI. GANGADHAR S. HOSAKERI AND D.M. MALLI, ADVOCATES)
                            -7-
                                      NC: 2023:KHC-D:14861-DB
                                 WA No. 100629 of 2023 c/w
                                     WA No. 100630 of 2023,
                                     WA No. 100633 of 2023,
                                     WA No. 100634 of 2023,
                                     WA No. 100635 of 2023,
                                    WA No. 100636 of 2023


AND

1.    COMMERCIAL TAX OFFICER (ENFORCEMENT-10)
      HUBBALLI
      NAVANAGAR HUBBALLI 580025
      TQ HUBBALLI DIST DHARWAD.

2.    THE JOINT COMMISSIONER OF COMMERCIAL TAX (APPEALS)
      DHARWAD DIVISION,
      HUBBALLI VANIJYA THERIGE BHAVANA,
      NAVANAGAR, HUBBALLI 580025.

3.    ASSISTANT COMMISSIONER OF COMMERCIAL TAXES
      (ENFORCEMENT) 01 SOUTH ZONE,
      VANIJYA THERINGE KARYALAYA -2
      NATIONAL GAMES VILLAGE COMPLEX
      EJIPUR, BENGALURU 560047.

4.    COMMISSIONER OF COMMERCIAL TAXES
      STATE OF KARNATAKA, 1ST FLOOR,
      VANIJYA THERIGE KARYALAYA KALIDASA MARG
      BENGALURU-560009.
5.    THE STATE OF KARNATAKA
      R/BY ITS PRINCIPAL SECRETARY- FINANCE DEPARTMENT
      MINISTRY OF FINANCE, GOVERNMENT OF KARNATAKA
      VIDHANASOUDHA, BENGALURU-560001.
                                             ...RESPONDENTS
(BY SRI. GANGADHAR J.M, AAG A/W
    SMT. GIRIJA HIREMATH, HCGP)

     THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH
COURT ACT, 1961, PRAYING THIS HON'BLE COURT TO, SET ASIDE
THE IMPUGNED INTERIM ORDER DATED 25.09.2023 AND
10/10/2023 PASSED BY LEANRED SINGLE JUDGE WRIT PETITION
NO.104990/2023 (T-RES) IN THE INTERESTS OF JUSTICE FOR
RELYING UPON THE RESTATEMENT AND REAPPRAISAL OF
TRANSACTION VALUE BY RESPONDENT NO. 3. AND EQUITY.
                             -8-
                                       NC: 2023:KHC-D:14861-DB
                                  WA No. 100629 of 2023 c/w
                                      WA No. 100630 of 2023,
                                      WA No. 100633 of 2023,
                                      WA No. 100634 of 2023,
                                      WA No. 100635 of 2023,
                                     WA No. 100636 of 2023


IN WA.NO. 100636/2023
BETWEEN

     M/S QUADRI AND COMPANY
     A PROPRIETARY CONCERN
     REPRESENTED HEREIN BY ITS PROPERIOTOR
     MR NAFIS C/O IZAZ AHMED
     HAVING ADDRESS AT GUPHS
     MANDAGADDE, 1, 5, GAFFOR KHAN COMPLEX
     SHIVAMOGGA THIRTHAHALLI N H 169-A ROAD
     NEAR LINGAPURA BUS STAND, LINGAPURA VILLAGE
     MANDAGADDI HOBLI, LINGAPURA
     SHIVAMOGGA 577220.
                                                ...APPELLANT
(BY SRI. BHARAT RAICHANDANI, ADVOCATE FOR
    SRI. GANGADHAR S. HOSAKERI AND D.M. MALLI, ADVOCATES)

AND


1.    COMMERCIAL TAX OFFICER (ENFORCEMENT-01)
      ROOM NO 119 ZILLA ADALITH BHAVANA
      HUBBALLI 5800025
      TQ HUBBALLI DIST DHARWAD.

2.    THE JOINT COMMISSIONER OF COMMERCIAL TAX (APPEALS)
      DHARWAD DIVISION,
      HUBBALLI VANIJYA THERIGE BHAVANA,
      NAVANAGAR HUBBALLI 580025.

3.    COMMISSIONER OF COMMERCIAL TAXES
      STATE OF KARNATAKA, 1ST FLOOR,
      VANIJYA THERIGE KARYALAYA KALIDASA MARG,
      BENGALURU-560009.

4.    THE STATE OF KARNATAKA
      R/BY ITS PRINCIPAL SECRETARY FINANCE DEPARTMENT,
      MINISTRY OF FINANCE, GOVERNMENT OF KARNATAKA
      VIDHANASOUDHA, BENGALURU-560001.
                                             ...RESPONDENTS
(BY SRI. GANGADHAR J.M, AAG A/W
    SMT. GIRIJA HIREMATH, HCGP)
                             -9-
                                       NC: 2023:KHC-D:14861-DB
                                  WA No. 100629 of 2023 c/w
                                      WA No. 100630 of 2023,
                                      WA No. 100633 of 2023,
                                      WA No. 100634 of 2023,
                                      WA No. 100635 of 2023,
                                     WA No. 100636 of 2023


     THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH
COURT ACT, 1961, PRAYING THIS HON'BLE COURT TO, SET ASIDE
THE IMPUGNED INTERIM ORDER DATED 25.09.2023 AND
10/10/2023 PASSED BY LD.SINGLE JUDGE IN WRIT PETITION
NO.104984/2023 (T-RES) AND ETC.,

      THESE APPEALS HAVING BEEN HEARD AND RESERVED ON
18.12.2023 AND COMING ON FOR PRONOUNCEMENT OF JUDGMENT,
THIS DAY S. SUNIL DUTT YADAV, J., DELIVERED THE FOLLOWING:


                         JUDGEMENT

With the consent of the parties all the appeals are

taken up together and disposed off by a common

judgment.

1. The present appeals have been filed seeking for

setting aside of the interim orders dated 25.09.2023,

passed in the writ petitions which order was purportedly

passed relying upon re-appreciation of transaction value by

the Assistant Commissioner of Taxes [Enforcement]. The

appellant has also sought for a direction to commissioner

of commercial taxes to pass fresh orders as to the legality

and validity of restatement and reappraisal of transaction

value. Appellant has also sought for the direction for the

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NC: 2023:KHC-D:14861-DB WA No. 100629 of 2023 c/w WA No. 100630 of 2023, WA No. 100633 of 2023, WA No. 100634 of 2023, WA No. 100635 of 2023,

release of consignment and conveyance on payment of -

(i) 20% of deposit of penalty imposed; (ii) secure balance

of consignment value as per tax invoice by a bank

guarantee leaving the question of validity restatement and

reappraisal of transaction value to be agitated in statutory

appeal.

2. Parties are referred to as per their rank in writ

petition.

3. Upon hearing counsel for the appellants Sri.Bharat

Raichandani, learned Advocate for Sri.Gangadhar S.

Hosakeri and Sri.D.M.Malli, Advocates for appellants, it

comes out that the main grievance of the petitioner is that

the condition imposed for release of goods by the learned

Single Judge is onerous and ought to be modified.

4. Before adverting to the impugned order, the brief

facts that are made out are that the petitioner had raised

an invoice on the consignee for supply of areca nut and

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had handed over the goods to the transporter, who had

hired conveyance to transport the goods.

5. The said conveyance was intercepted by the Assistant

Commissioner of Commercial Taxes (Enforcement).

Physical verification was conducted and initially impugned

order of detention under section 129 of the GST Act, came

to be passed detaining the conveyance and the goods.

6. It is further made out from the records that the

report of the value by CAMPCO was to the effect that

goods were undervalued.

7. Without the proceedings under section 129 of the Act

having concluded, it is asserted that confiscation notice

came to be issued followed by a confiscation order.

8. The said order was challenged by filing an appeal

under section 107 of the Act and certain payments were

made and upon dismissal of such appeal, further appeal

was preferred and order in appeal under section 107(11)

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NC: 2023:KHC-D:14861-DB WA No. 100629 of 2023 c/w WA No. 100630 of 2023, WA No. 100633 of 2023, WA No. 100634 of 2023, WA No. 100635 of 2023,

of KGST Act came to be passed, which order was

challenged in the Writ proceedings.

9. The learned Single Judge on 25.09.2023, passed an

order as follows:-

"Heard the learned counsel for the petitioner and learned HCGP for the respondents. This court in identical case has granted an interim order directing the respondent- authorities to release the goods confiscated subject to the petitioner depositing disputed tax amount and also furnishing bond.

This court has also taken cognizance of the modification made by the Division Bench of this court in W.A.No.100472/2023. The Division Bench though concurred with the interim order granted by this court, however, has imposed additional condition on the petitioner in the said case to furnish security by way of immovable property to the value of Rs.95,23,150/-. By way of interim relief, it is directed that concerned authority/respondent No.1 shall release the goods confiscated pursuant to order dated 09.01.2023 passed in Form GST MOV-11, subject to the following conditions:

i) The petitioner shall deposit 20% of the amount i.e., Rs.9,34,524.80.

ii) The petitioner shall furnish bond to the tune of Rs.46,72,624/-.

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iii) Petitioner shall also furnish security by way of immovable property to the value of Rs.46,72,624/-.

iv) It is made clear that on receipt of 20% of the demand and bonds, the concerned authority shall release the goods within a period of two weeks."

10. The said order was modified insofar as time limit for

compliance by order dated 10.10.2023, whereby, time

limit of one week was granted, failing which the interim

order granted on 25.09.2023 would stand automatically

vacated.

11. It is the order dated 25.09.2023, imposing conditions

that has been challenged.

12. The counsel for the petitioner has contended that the

proceedings under section 129 of the Act having been

initiated could not have been abandoned midway and

proceedings for confiscation under section 130 of the Act

be proceeded with. It is further contended that the

conditions imposed are onerous and the question of

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NC: 2023:KHC-D:14861-DB WA No. 100629 of 2023 c/w WA No. 100630 of 2023, WA No. 100633 of 2023, WA No. 100634 of 2023, WA No. 100635 of 2023,

imposing conditions on the basis of value of goods does

not arise.

13. Though various other contentions have been raised,

it may not be appropriate to address regarding such

contentions on merits being conscious of pendency of

adjudication regarding the order of confiscation under

section 130 of the Act.

14. Learned Additional Advocate General appearing for

the revenue, on the other hand contends that there is a

clear intention of evasion of tax as e-way bill was not

being carried. Reliance was also placed on the order of the

Apex Court in State of Uttar Pradesh and Other v.

K Pan Fragrance and Others Private Limited1,

contending that the learned Single Judge at the first

instance ought not to have permitted the release of

confiscated goods as release could be permitted only in

terms of the statutory provisions, i.e., Rule 140 of GST

2020 (5) SCC 811

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Rules and that the bank guarantee is required to be

furnished for the entirety of the value of goods.

15. Heard both sides.

16. At the outset, it must be noted that the petitioner has

challenged the imposition of conditions for release of goods

in the impugned order.

17. The revenue not having challenged the interim order

dated 25.09.2023, permitting release of goods, cannot

now contend that the order of release could not have been

passed on the conditions that were imposed and that the

conditions should have been imposed regarding furnishing

of bank guarantee for the entirety of the value of goods.

18. Accepting any argument by the revenue which places

the petitioner worse off than the interim order passed on

25.09.2023 by the learned Single Judge, would not arise

and accordingly, contentions of the State regarding the

correctness of the interim order of release or regarding the

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insufficiency of imposition of conditions cannot be

entertained.

19. The question relating to validity of the order under

section 130 of the Act is a matter still pending adjudication

before the learned Single Judge. Though the counsel for

the petitioner has submitted that imposition of condition

should be restricted to tax and penalty cannot be linked to

the value of goods, such contention cannot be accepted.

The proceedings under Section 130 of the Act relate to

confiscation of goods and if such proceedings are upheld

then the property would vest with the revenue and the

revenue would be entitled to sell the property and

appropriate the proceeds.

20. The concern of the State that the valuation of the

petitioner being defective and actual valuation being much

higher cannot be ignored though the aspect of valuation is

also a matter for adjudication. However, it would be

appropriate to put the petitioner on terms by ensuring that

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the valuation of the goods as determined by the revenue is

realizable if the validity of the proceedings under section

130 of the Act are upheld.

21. It must also be noted that the order passed in

W.A.No.100472/2023, wherein, the Co-ordinate Bench had

directed furnishing of security of immovable property was

passed on the concession of the assessee.

22. In light of the above the following order could be

passed modifying the interim order dated 25.09.2023

passed by the learned Single Judge:-

a) The appellants to make good the 25% deposit

provided for in appeal proceedings as regards the order

impugned in the writ proceedings. It is made clear that

deposit made in the earlier appeals by the appellant could

be adjusted.

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NC: 2023:KHC-D:14861-DB WA No. 100629 of 2023 c/w WA No. 100630 of 2023, WA No. 100633 of 2023, WA No. 100634 of 2023, WA No. 100635 of 2023,

b) The appellants to make good tax and penalty as per

the orders impugned before the learned Single Judge by

securing the same by way of bank guarantee.

c) The appellants to furnish bank guarantee insofar as

the value of goods as per his invoice.

d) The appellants to furnish personal bond of the

Proprietor representing the appellants to the extent of

differential value of the goods as per the invoice of the

appellants vis-à-vis the valuation by CAMPCO made on

behalf of the State.