In WP(C) NO. 21086 of 2023 -KER HC- Kerala High Court orders release of gold ornaments seized by GST authorities from Shine Jewellery
Justice C.S. Dias [08-08-2023]

Read Order: Shine Jewellery V. Enforcement Officer and Ors

Chahat Varma

New Delhi, August 23, 2023: The Kerala High Court has ruled in favour of Shine Jewellery (petitioner), by ordering the release of gold ornaments that were seized by the GST authorities.

In the present case, the petitioner, was a registered dealer under the Central Goods and Services Tax Act. On 6th September 2021, the enforcement officers, seized 609.040 grams of gold ornaments belonging to the petitioner. The petitioner then filed an appeal before the Joint Commissioner (Appeals). The appeal was partially allowed, and Authorities were directed to release the detained goods on payment of tax, penalty and modified fine in lieu of confiscation. The petitioner made a request to the Authorities to release the goods after remitting the modified demand, but the Authorities refused to accept the modified demand and refused to release the goods.

The bench of Justice C.S. Dias observed that the authorities had not taken any steps to challenge the appellate order and that there was no justifiable or cogent reason for them to refuse to accept the order.

The bench also noted that the petitioner was willing to comply with the modified demand and that it was finding it difficult to carry on with its business due to the detention of the goods.

Thus, the bench ruled that the Enforcement Officer must release the goods covered by the demand. The release should be facilitated by issuing an order within two weeks, permitting the petitioner to pay the modified demand as specified in the appellate order. The Enforcement Officer was also required to notify the petitioner of their appearance date within the stipulated timeframe and release the goods as directed in the order.