[2025:RJ-JP:50836-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 12413/2025 Venkateshwara Traders, Through Its Proprietor Ravichandra V S/o. Venkateshappa,resident Of College Road, Near Old Shakshi Gas Office, Nittuvali, Vtc Devnagar, Po Nittuvalli, District Devnagar, Karnataka-577005 Having Its Registered Office At Ground Floor,no. 389/17G, Sri Lakshmi Venkateshwara Nilaya, 1St Block, Sai Baba Temple Backside, Jayanagara, Davanagere - 577005. ----Petitioner Versus 1. The Union Of India, Through The Secretary, Ministry Of Finance, Department Of Revenue, North Block, New Delhi- 110 001. 2. State Of Rajasthan, Through The Secretary, Ministry Of Finance, Department Of Revenue, 1St Floor, Main Building, Gate 2, Government Secretariat, Jaipur, Rajasthan 302005. 3. Assistant Commissioner, Circle B, Ward Ii Rajasthan Enforcement Wing-I, Jaipur, Room No.401, 3Rd Floor, Kar Bhawan, Ambedkar Circle, Jaipur-302005 4. Additional Commissioner (Adm), Enforcement Wing - I, Rajasthan, Kar Bhawan, Ambedkar Circle, Jaipur-302005 ----Respondents Connected With D.B. Civil Writ Petition No. 12596/2025 Venkateshwara Traders, Through Its Proprietor Ravichandra V S/o. Venkateshappa, Resident Of College Road, Near Old Shakshi Gas Office, Nittuvali, Vtc Devnagar, Po Nittuvalli, District Devnagar, Karnataka-577005 Having Its Registered Office At Ground Floor, No. 389/17G, Sri Lakshmi Venkateshwara Nilaya, 1St Block, Sai Baba Temple Backside, Jayanagara, Davanagere - 577005. ----Petitioner Versus 1. The Union Of India, Through The Secretary, Ministry Of Finance, Department Of Revenue, North Block, New Delhi- 110 001. [2025:RJ-JP:50836-DB] ( of ) [CW-12413/2025] 2. State Of Rajasthan, Through The Secretary, Ministry Of Finance, Department Of Revenue, 1St Floor, Main Building, Gate 2, Government Secretariat, Jaipur, Rajasthan 302005. 3. Assistant Commissioner, Circle B, Ward Ii Rajasthan Enforcement Wing-Iii, Jaipur, Room No.401, 3Rd Floor, Kar Bhawan, Ambedkar Circle, Jaipur-302005 4. Additional Commissioner (Adm) Enforcement Wing - Iii, Rajasthan, Kar Bhawan, Ambedkar Circle, Jaipur-302005 ----Respondents D.B. Civil Writ Petition No. 12598/2025 Venkateshwara Traders, Through Its Proprietor Ravichandra V S/o. Venkateshappa, Resident Of College Road, Near Old Shakshi Gas Office, Nittuvali, Vtc Devnagar, Po Nittuvalli, District Devnagar, Karnataka-577005 Having Its Registered Office At Ground Floor, No. 389/17G, Sri Lakshmi Venkateshwara Nilaya, 1St Block, Sai Baba Temple Backside, Jayanagara, Davanagere - 577005. ----Petitioner Versus 1. The Union Of India, Through The Secretary, Ministry Of Finance, Department Of Revenue, North Block, New Delhi- 110 001. 2. State Of Rajasthan, Through The Secretary, Ministry Of Finance, Department Of Revenue, 1St Floor, Main Building, Gate 2, Government Secretariat, Jaipur, Rajasthan 302005. 3. Assistant Commissioner, Circle B, Ward Ii Rajasthan Enforcement Wing-Iii, Jaipur, Room No.401, 3Rd Floor, Kar Bhawan, Ambedkar Circle, Jaipur-302005 4. Additional Commissioner (Adm) Enforcement Wing - Iiii, Rajasthan, Kar Bhawan, Ambedkar Circle, Jaipur-302005 ----Respondents For Petitioner(s) : Mr.Raaghul, Adv. (Through VC) with Mr.Niraj Kumar Yadav, Adv. For Respondent(s) : Mr.Vigyan Shah, AAG with Mr.Rohit Tiwari, AAAG, Mr.Sankalp Vijay, AAAG, Mr.Priyam Agarwal, Adv. & [2025:RJ-JP:50836-DB] ( of ) [CW-12413/2025] Mr.Deepak Mittal, Adv. Mr.Praveen Singh Rajawat, Sr. CGPC. HON'BLE THE ACTING CHIEF JUSTICE MR. SANJEEV PRAKASH SHARMA HON'BLE MRS. JUSTICE SANGEETA SHARMA Judgment 16/12/2025 1. These petitions are being decided by a common order as the issue involved therein is similar. For convenience, the facts are being taken from D.B. Civil Writ Petition No. 12413/2025. 2. Heard learned counsel for the parties. 3. Learned counsel for the petitioner submits that the petitioner is a proprietorship concerned in the State of Karnataka making a taxable supply of goods in the State of Karnataka. 4. The challenge is made to the order dated 08.07.2025 under Section 130 of the Central Goods and Services Tax Act, 2017 (hereinafter ‘the CGST Act’) whereby, penalty and fine aggregating to Rs.53,33,125/- has been imposed on the petitioner. The petitioner is engaged in trading of arecanut and in the course of business, the petitioner received a purchase order from M/s.Aryan Traders, a registered dealer based in Delhi for supply of non-edible arecanuts whereupon, the petitioner issued a Tax Invoice No.51 for supply of 250 bags of arecanuts with total weight of 17,500 kg. 5. The valuation of the goods were found to be Rs.18,20,000/- and an amount of Rs.91,000/- has been imposed @ 5% IGST. The driver of the vehicle was Manoj Kumar and the goods were transferred via Vehicle No.RJ14-GP-7783. 6. The impugned order was passed on 08.07.2025 confirming the proposal in MOV-10, penalty of Rs.2,31,875/-, fine of [2025:RJ-JP:50836-DB] ( of ) [CW-12413/2025] Rs.46,37,500/- alongwith penalty of Rs.2,31,875/- under Section 130 and fine in lieu of confiscation of convenience to an equal amount. 7. Learned counsel for the petitioner submitted that the provisions of Section 130 of the CGST Act could not have been invoked and he has therefore prayed that the goods be released and also to set aside the order dated 08.07.2025 passed in Form GST MOV-11. 8. Per contra, the State has contested the claim and pointed out that the summons were issued to the petitioner and despite service, no personal appearance of any of the accused was noticed. A written reply was filed and after considering the contentions the orders were passed. 9. It is stated that this Court ought not exercise its extraordinary jurisdiction in such cases where the record reflects that the petitioner through a web of sham firms and bogus transactions have persistently defrauded the State exchequer. 10. We have considered the submissions. 11. Admittedly, the arecanuts are such goods that come under the definition of perishable goods. 12. Considering the dispute, which needs to be examined on factual aspects, we direct that upon furnishing of a bank guarantee or solvency security of an amount equivalent to the amount as reflected in the invoice of purchase, the goods shall be released to the petitioner, however, releasing of the goods in no manner will affect the merits relating to the demand being raised by the Department which is to be examined independently by the Authorities after considering the replies and documents of the [2025:RJ-JP:50836-DB] ( of ) [CW-12413/2025] respondents and the petitioner in this regard. The exercise in this regard will be taken up within a period of three months. The goods shall be released if the solvency security is filed within a period of fifteen days. 13. The writ petitions are accordingly disposed of. 14. All pending misc. applications stand disposed of. 15. A copy of this order be placed in each connected petition. (SANGEETA SHARMA),J (SANJEEV PRAKASH SHARMA),ACTING CJ Himanshu Soni/85-87