2019 (3) TMI 1726 - HC - GST

Confiscation of goods or conveyance - levy of penalty - proceedings under section 129 of the Act not initiated - invocation of section 130 of the Act - HELD THAT - A perusal of the impugned notice reveals that in paragraph 4 thereof, there is blank which has not been filled in which makes it manifest that the procedure as required under the provisions of the Act as referred to in paragraph 4 have not been followed by the competent authority prior to issuance of the said notice. Issue Notice to the respondents returnable on 3rd April, 2019.

Summary

Issues:
1. Deletion of respondent No. 3 from the array of respondents.
2. Validity of notice for confiscation of goods and levy of penalty under section 130 of the Central Goods and Services Act, 2017 without following the procedure under section 129 of the Act.

Analysis:
1. The court granted leave to delete respondent No. 3 from the array of respondents, indicating a procedural change in the case.

2. The petitioner's advocate highlighted that the notice for confiscation of goods and penalty under section 130 of the CGST Act was issued without following the required procedure under section 129 of the Act. Section 129 mandates issuing a notice and providing an opportunity for a hearing before passing an order. The impugned notice directly imposed penalties without initiating proceedings under section 129, which was deemed impermissible in law.

3. The court observed that the impugned notice had a blank space in paragraph 4, indicating a failure to follow the necessary procedure as mandated by the relevant provisions of the Act. This non-compliance raised concerns about the legality of the actions taken.

4. The court issued notice to the respondents, returnable on a specified date, requiring them to show cause as to why costs should not be imposed for non-compliance with statutory provisions. This step indicates the court's intention to ensure adherence to legal procedures.

5. Additionally, the court clarified that the respondents could release the vehicle and goods by paying the tax amount mentioned in the impugned notice. Direct service for this purpose was permitted, offering a temporary resolution pending further legal proceedings.