2019 (3) TMI 432 - HC - GST

E-way bill - confiscation of goods - Procedure to be followed in case where any goods are in transit in contravention of the provision of the Act or the rules made thereunder - Held that - The attention of the court was invited to the impugned show cause notice dated 1.3.2019, to submit that the same seeks to impose penalty, redemption fine and confiscation under section 130 of the Act without initiating any proceedings under section 129 of the Act, which is not permissible in law - Issue Notice returnable on 8th March, 2019.

Summary

Issues:
1. Interpretation of sections 129 and 130 of the Central Goods and Services Tax Act, 2017 regarding the procedure for goods in transit.
2. Validity of imposing penalty, redemption fine, and confiscation under section 130 without initiating proceedings under section 129.
3. Payment of integrated goods and services tax on perishable goods with limited shelf-life.

Analysis:

1. The learned advocate for the petitioners highlighted the provisions of sections 129 and 130 of the Central Goods and Services Tax Act, 2017. Section 129 mandates the issuance of a notice by the officer, followed by an opportunity of hearing before passing an order in case of goods in transit contravening the Act or rules. It was argued that section 130 can only be invoked if there is non-compliance with the order under section 129. The impugned show cause notice sought to impose penalties under section 130 without initiating proceedings under section 129, which was deemed impermissible in law. Additionally, it was emphasized that the goods in question had already paid integrated goods and services tax upon import and were perishable with a limited shelf-life.

2. Considering the submissions made, the court issued a notice returnable on 8th March, 2019. This indicates that the court acknowledged the concerns raised by the petitioners regarding the procedural requirements under sections 129 and 130 of the Act and deemed it necessary to further examine the matter.

3. The case also raises the issue of the payment of integrated goods and services tax on perishable goods with a limited shelf-life. This aspect may have implications on the application of the relevant provisions of the Act concerning the treatment of such goods during transit and the imposition of penalties or fines. The court may need to delve deeper into this specific aspect to ensure a fair and just decision in the case.

In conclusion, the judgment by the Gujarat High Court involves a detailed analysis of the procedural requirements under sections 129 and 130 of the Central Goods and Services Tax Act, 2017, along with considerations regarding the payment of integrated tax on perishable goods. The court's decision to issue a notice indicates a willingness to further examine the legal complexities involved in the case to ensure a just outcome.