THE ENFORCEMENT OFFICER & ORS. v. M/s AUTHENTIC METALS

Introduction

This judgment of the Kerala High Court is an important decision dealing with the interplay between detention proceedings under Section 129 and confiscation proceedings under Section 130 of the CGST Act. The Division Bench clarified that once confiscation proceedings have already been initiated through Form GST MOV-10, the High Court should ordinarily refrain from granting interim release of goods or deciding contentious jurisdictional issues before the statutory adjudication is completed.

The Court held that where confiscation proceedings are still pending, the legality of detention and the entitlement to release of goods should first be examined by the statutory adjudicating authority. Consequently, the Division Bench set aside the order of the Single Judge directing release of the goods on furnishing a bond and remitted the matter for completion of confiscation proceedings.