2019 (9) TMI 1158 - HC - GST

Confiscation of Conveyance - Invocation of second proviso to sub-section (2) of section 130 as well as sub-section (3) of section 130 of the Act - HELD THAT - Issue Notice returnable on 10th October, 2019.

Summary

Issues: Interpretation of section 130 of the Central Goods and Services Tax Act, 2017 regarding confiscation of conveyance and payment of fine in lieu of confiscation.

In the judgment delivered by the Gujarat High Court, the petitioner's advocate argued that under the third proviso to sub-section (2) of section 130 of the CGST Act, the owner of a conveyance used for hire could opt to pay a fine equal to the tax payable on the goods being transported, instead of facing confiscation. On the other hand, the Assistant Government Pleader contended that the second proviso to sub-section (2) and sub-section (3) of section 130 presented a different interpretation. The court, after considering the submissions of both parties, issued a notice returnable on a specified date. Additionally, as an ad-interim relief measure, the court directed the release of the petitioner's truck upon payment of a fine of a specific amount mentioned in the notice issued under section 130, subject to the final outcome of the petition and proceedings under the CGST Act. The court specified that the amount paid would be treated as a deposit pending the final outcome, allowing the petitioner to challenge any adverse order before a higher authority. The petitioner was also required to file an undertaking with the court regarding payment of any differential amount in case of an adverse order under section 130, while retaining the right to challenge such an order. Direct service was permitted in this matter.