📰 𝗖𝗮𝗹𝗰𝘂𝘁𝘁𝗮 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗜𝗻𝘁𝗲𝗿𝗶𝗺 𝗥𝗲𝗹𝗲𝗮𝘀𝗲 𝗼𝗳 𝗦𝗲𝗶𝘇𝗲𝗱 𝗠𝗮𝗰𝗵𝗶𝗻𝗲𝗿𝘆 𝗚𝗿𝗮𝗻𝘁𝗲𝗱 𝗼𝗻 𝗕𝗮𝗻𝗸 𝗚𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲

📢 The court ordered, "Machinery seized under the WBGST/CGST Act may be released on an interim basis upon submission of a bank guarantee equal to the imposed penalty."

🔍 𝗙𝗮𝗰𝘁𝘀: • 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Drb Infrastructure Pvt. Ltd. vs The State of West Bengal • 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿: WPA 509 of 2023 • 𝗖𝗼𝘂𝗿𝘁: Calcutta High Court • 𝗗𝗮𝘁𝗲: 6-Jun-2023

𝗜𝘀𝘀𝘂𝗲: Drb Infrastructure Pvt. Ltd., a construction company, had its machinery seized by the State of West Bengal while being transported from Arunachal Pradesh to Jammu and Kashmir. The seizure was due to alleged violations of Sections 31, 68, and 129(1) of the WBGST/CGST Act 2017, alongside Rules 45 and 55 of the WBGST/CGST Rules 2017, with a penalty of Rs. 8,13,600/- imposed. The machinery’s detention disrupted the company’s project timeline in Jammu and Kashmir, leading Drb Infrastructure to seek a court order for the release of the equipment and to contest the penalty.

𝗖𝗼𝘂𝗿𝘁’𝘀 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻: The State proposed an interim release of the machinery upon the company furnishing a bank guarantee equal to the penalty amount. The Calcutta High Court accepted this proposal, granting interim relief and ordering the release of the machinery upon submission of the bank guarantee.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The respondent was directed to file an affidavit-in-opposition within three weeks, with a reply from the petitioner due within two weeks after. The final disposal of the case will proceed after these submissions, addressing the larger implications on regulatory compliance and operational needs.

📜 This case illustrates the critical balance between enforcing GST regulations and ensuring that essential infrastructure projects are not unduly delayed. The upcoming final judgment will clarify the responsibilities and rights of companies in relation to GST compliance on cross-state asset transportation. Team GSTpanacea 7503031378