2019 (11) TMI 892 - HC - GST

Confiscation of goods alongwith the vehicle - respondents have proceeded under section 130 of the CGST Act, 2017 by issuing notice in Form GST-MOV-10 on the ground that after checking the dealers record according to the GST system, the dealer appears to be involved in bogus billing practice or making false claim of ITC for the period of August, 2019 and September, 2019 - HELD THAT - Issue notice, returnable on 18th November, 2019.

Summary

Issues:
Confiscation of goods and vehicle under section 130 of the CGST Act despite no discrepancy found during physical verification.

Analysis:
The petitioner's advocate highlighted that the vehicle and goods were detained for verification, and despite no discrepancies found during physical verification, the respondents proceeded under section 130 of the CGST Act. The detention was extended, and physical verification was conducted, resulting in Form GST-MOV-04 showing no discrepancies. However, the respondents issued a notice in Form GST-MOV-10 alleging the dealer's involvement in bogus billing practices or false ITC claims for August and September 2019. Subsequently, an order was passed confiscating the goods and the vehicle based on the same grounds.

The petitioner argued that confiscation of the vehicle and goods without any discrepancies in the documents or goods is impermissible. In response to the submissions made by the petitioner's advocate, the court issued a notice returnable on 18th November 2019. Direct service was permitted on the same day, indicating the court's acknowledgment of the seriousness of the issue raised by the petitioner regarding the confiscation under section 130 of the CGST Act despite the absence of any discrepancies found during physical verification. The court's decision to issue a notice suggests a willingness to examine the legality and validity of the confiscation order in light of the facts presented by the petitioner.