Facts of the Case

The petitioner, JCT Limited, was the owner of goods that were detained under Section 129 of the CGST Act, 2017, following which a final order of confiscation was passed in Form GST MOV-11 under Section 130 of the Act. The petitioner deposited the tax and penalty demanded and secured release of the goods. However, aggrieved by the manner in which the confiscation proceedings were conducted, the petitioner preferred an appeal under Section 107 of the CGST Act, being Appeal No. 111 of 2019-20, before the appellate authority. Despite more than three years having elapsed, the appeal had not been taken up for hearing. The petitioner therefore approached the Gujarat High Court under Article 226, seeking a writ of mandamus directing the appellate authority to expeditiously hear and decide the pending appeal.

Issues Involved

  1. Whether the High Court can, in writ jurisdiction, direct the appellate authority to expeditiously dispose of a statutory appeal under Section 107 of the CGST Act that has remained pending for an unreasonably long period.

Petitioner's Arguments

  • The appeal against the final order of confiscation under Section 130 of the CGST Act was filed as far back as 2019-20 and remained undecided even after more than three years.
  • The petitioner had already deposited the tax and penalty and secured release of the goods, but continued to have grievances regarding the mode and manner in which the confiscation proceedings were conducted.
  • In the absence of any progress in the appeal, a writ of mandamus was necessary to direct the appellate authority to take up and decide the appeal within a time-bound schedule.

Respondent's Arguments

  • The learned AGP appeared for the respondents but did not seriously contest the factual position regarding the prolonged pendency of the appeal.

Court Order/Findings

  • The Court noted that the appeal against the final order of confiscation under Section 130 of the CGST Act had been pending for more than three years without being taken up for hearing.
  • The Division Bench found this delay unjustifiable and held that the appellate authority must be directed to dispose of the long-pending appeal expeditiously.
  • The writ application was disposed of with a direction to the appellate authority to take up the appeal for hearing within 15 days from the date of the order and to dispose of it within a further 15 days from the date of hearing, in accordance with law.
  • Direct service was permitted.

Important Clarification

  • Where a statutory appeal under Section 107 of the CGST Act against a Section 130 confiscation order remains pending for an unreasonably long time without being listed for hearing, the High Court will step in under Article 226 to enforce a time-bound disposal, without going into the merits of the confiscation itself.
  • The remedy in such cases is procedural — a mandamus for expeditious hearing — rather than a substitution of the appellate authority's own decision on the confiscation.

Sections Involved

  • Section 107, CGST Act, 2017 — appeals to the Appellate Authority against orders passed by adjudicating authorities.
  • Section 129, CGST Act, 2017 — detention, seizure and release of goods and conveyances in transit.
  • Section 130, CGST Act, 2017 — confiscation of goods or conveyances and levy of penalty.

Decision – In Favour of

In favour of the Assessee — the Court directed time-bound disposal of the long-pending statutory appeal, without expressing any opinion on the merits of the underlying confiscation.

Related Case Laws

No related case laws are available on this site at present for cross-reference on this specific point.

Case Details

  • Court: High Court of Gujarat at Ahmedabad
  • Case No.: R/Special Civil Application No. 6633 of 2022
  • Coram: Hon'ble Mr. Justice J.B. Pardiwala and Hon'ble Ms. Justice Nisha M. Thakore
  • Date of Order: 06.04.2022

Link to Download the Order

Download the full judgment (PDF)

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