Goods confiscation under GST.

The High Court has ruled that goods confiscated under Section 130 of the GST Act can be released during the pendency of an appeal, provided they haven’t yet been auctioned. In the case of Nikhil Ayyappan vs. State of Kerala (WP(C) No. 19789/2025), the petitioner, whose scrap material was seized in transit, had already appealed the confiscation order and been granted a three-month window to pay a fine in place of forfeiture. Although that period had expired, the court found the goods were not yet sold, and therefore upheld the petitioner’s right to pay the prescribed fine and reclaim the goods even while the appeal is ongoing. Justice Ziyad Rahman A.A. directed the department to release the goods, emphasizing that the statutory mechanism under S.130(7) and S.67(6) allows such a remedy when auction hasn’t taken place.

This underlines a significant legal position: the pendency of appeal, combined with non-auctioned status of goods, entitles the petitioner to interim release by complying with payment conditions laid down in the original order.

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