Disposed

Somnath Corporation v. State of Rajasthan

Rajasthan HC11 Feb 2022CW/1558/2022

Case brief

AI extract

What is this about?

The Court directed the release of seized goods and vehicle subject to the petitioner depositing a bank guarantee for the tax and maximum possible penalty amount and furnishing a bond for the full value of the goods. The GST authorities were permitted to proceed with assessment after release.

What did the court decide?

Release of vehicle and goods subject to furnishing a bank guarantee of Rs.3.75 lacs and a bond for the full value of goods.

Somnath Corporation Vs State of Rajasthan — GST and Indirect Tax | Rajasthan HC (2022)

¶1

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

¶2

D.B. Civil Writ Petition No. 1558/2022

¶3

Somnath Corporation, Tirupati Market Complex, Opposite Apmc Gunj Bazar, Near Sbi Bank, Unjha, Mehsana, Gujarat Through Its Partners- 1.1 Sh. Ketul Bipinbhai Patel S/o Sh. Bipinbhai Patel, Aged About 31 Years, R/o Dudhli Ni Desh, Hari Paru, Unjha, Mehsana, Gujarat. 1.2 Sh. Varun Bipinbhai Patel S/o Sh. Bipinbhai Patel, Aged About 28 Years, R/o Dudhli Ni Desh, Hari Paru, Unjha, Mehsana, Gujarat.

¶4

Radhey Shyam Singh Shekhawat S/o Sh. Puran Singh, Aged About 40 Years, R/o Dhani Dule Singh Ki, Barnagar, Kotputli, Jaipur (Raj.)- Driver/person In Charge Of Vehicle No. Rj 32 Gc 6154.

¶5

----Petitioners

¶6

Versus

¶7

State Of Rajasthan, Through The Commissioner Of State Tax, Rajasthan Goods And Services Tax, Kar Bhawan, Ambedkar Circle, Bhawani Singh Road, C-Scheme, Jaipur (Raj.).

¶8

Assistant Commissioner (State Tax), Ward-Ii, MukamKotputli, Circle Shahpura, Jaipur-I (Raj.).

¶9

----Respondents

¶10

For Petitioner(s)	: Mr. Manish Lawaniya and Mr. Manish Parihar
For Respondent(s)	: Mr. Punit Singhvi and Mr. Ayush Singh

¶11

HON'BLE THE CHIEF JUSTICE MR. AKIL KURESHI HON'BLE MR. JUSTICE SUDESH BANSAL

¶12

Order

¶13

11/02/2022

¶14

The petitioner has prayed for quashing a notice dated 21.01.2022 and the order of detention of the transport truck with goods which was done by the State GST authorities. The case of

¶15

(2 of 3)

¶16

[CW-1558/2022]

¶17

the petitioner is that a consignment of cumin seeds originating from Gujarat was in transit through a State, final destination being in Uttar Pradesh. It was intercepted by the GST authorities at Jaipur on the ground that driver of the vehicle did not carry valid document. The petitioner was issued a show cause notice and the goods along with vehicle have been seized, hence the petition.

¶18

In our opinion subject to the assessment, the vehicle and the goods should be released on certain conditions which power in any case the respondents have under the State GST Act. At the very best the expectation of the department could be to tax the goods and impose maximum possible penalty. As long as these amounts are secured, no purpose would be served in taxing the goods in the vehicle. The goods are perishable and the transport vehicle has been stranded.

¶19

We are informed that the value of goods is approximately Rs.24.84 lacs on which applicable tax would come to approximately Rs.1.24 lacs. Considering 200% maximum imposable penalty on such basic tax amount, the round figure that would come to inclusive of possible tax and highest penalty is Rs.3.75 lacs.

¶20

Under the circumstances the respondents shall release the goods on (i) the petitioner either depositing under protest or furnishing a bank guarantee to the tune of Rs.3.75 lacs before the respondent No.2 and (ii) also furnishes a bond for the full value of the goods. As soon as these conditions are fulfilled the vehicle and the goods shall be released forthwith. The GST authorities may carry out assessment after issuing notice to the petitioner. The liability of the petitioner shall be judged on the basis of such assessment subject to right of appeal.

¶21

(3 of 3)

¶22

[CW-1558/2022]

¶23

With these directions the petition is disposed of.

¶24

(SUDESH BANSAL),J

¶25

(AKIL KURESHI),CJ

¶26

KAMLESH KUMAR /s-77

Somnath Corporation v. State of Rajasthan

Case brief

What is this about?

What did the court decide?

Somnath Corporation v. State of Rajasthan

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bhim Singh S/O Padam Singh Vs State of Rajasthan

Mathura Lal C.T. No. - 680 S/O Sh. Gopal Vs State of Rajasthan

Pratibha Mehta W/O Prabhti Raj Mehta Vs Income Tax Officer

Soniya Sharma D/O Gajanand Sharma Vs State of Rajasthan

Unimaxe Buildestate Private Limited Vs Union of India

Unimaxe Buildestate Private Limited Vs Union of India