ASHOK PARASURAM UTHALE v. THE INTELLIGENCE OFFICER INTELLIGENCE UNIT-II, THIRUVANANTHAPURAM & ORS.

Introduction

This judgment clarifies the interplay between Sections 67 and 130 of the CGST Act concerning the provisional release of seized goods. The Kerala High Court held that once confiscation proceedings under Section 130 have been initiated, the provisional release mechanism under Section 67(6) ceases to apply. The Court further observed that where the statutory period for retention of seized goods has been validly extended under the proviso to Section 67, the assessee cannot seek release of goods on the ground that the original six-month period has expired.

Background of the Case

The petitioner, a traditional goldsmith engaged in melting, polishing and purification of gold ornaments, was subjected to a search and seizure operation under Section 67 of the CGST Act on 28.12.2023.