Court mandates timely sale of hazardous goods under GST laws to avoid potential risks.
The Karnataka High Court, presided over by Justice B.M. Shyam Prasad, has directed the timely sale of goods seized by the State GST Authorities due to unpaid penalties. The case, M/s. TPJ Carriers v. State of Karnataka, highlights the procedural obligations under the Central Goods and Services Tax Act, 2017, and the State Goods and Services Tax Act, 2017.
The judgment came in response to a writ petition filed by M/s. TPJ Carriers, a transporter involved in the conveyance of bulk bitumen, a hazardous material. The transport vehicle was intercepted, and a penalty of Rs. 23,86,590 was imposed under Section 129(3) of the GST Acts. The petitioner paid a reduced penalty of Rs. 1,00,000, as provided under the Acts, but the seized goods remained unsold.
The court emphasized the importance of the timely sale of seized goods, especially those that are perishable or hazardous. According to Section 129(6) of the GST Acts, if the penalty is not paid within 15 days, the authorities must act promptly to sell the goods. The court noted that the hazardous nature of the seized goods necessitated an expedited sale to mitigate any potential risks.
Justice Prasad criticized the delay in action by the authorities, stressing the statutory obligation to act promptly, regardless of the appeal period. The court ordered the sale of the goods within five weeks, with proper notice given to the owner and a public announcement of the sale.
This decision underscores the legal requirement for authorities to adhere to the timelines prescribed under the GST Acts, ensuring that perishable and hazardous goods are managed efficiently to prevent depreciation and potential hazards.
Bottom Line :
Goods seized under Section 129(3) of the CGST/SGST Act, 2017 must be brought to sale if the penalty is unpaid within 15 days, with an obligation for the authorities to act promptly, especially for perishable or hazardous goods.
Statutory provision(s): Central Goods and Services Tax Act, 2017, Section 129(6), State Goods and Services Tax Act, 2017, Section 129(6).
M/s. TPJ Carriers v. State of Karnataka, (Karnataka) : Law Finder Doc id # 2966543
