2020 (1) TMI 336 - HC - GST

Release of seized goods alongwith truck - only objection of the officer is that prima facie documents tendered are found to be defective and for that purpose vehicle cannot be detained because everything can be verified online - HELD THAT - This Court had an occasion to consider the provisions of Sections 129 and 130 of the Act respectively, in detail, in the case of Synergy Fertichem Pvt. Ltd. V/s. State of Gujarat and allied matters 2019 (12) TMI 1213 - GUJARAT HIGH COURT . We are of the view that as the notice for confiscation has been issued, it is expected of the writ applicant now to file an appropriate detailed reply to the same, for the purpose of getting such notice discharged. Application disposed off.

Summary

Issues:
- Detention of goods and vehicle by GST Authorities
- Alleged breach of provisions of the Gujarat Goods and Services Tax Act, 2017
- Notice issued under Section 130 of the Act for confiscation and penalty imposition
- Applicability of Sections 129 and 130 of the Act
- Requirement of detailed reply from the writ applicant
- Direction to the concerned authority to pass appropriate order within a specified period

Analysis:

The High Court of Gujarat heard multiple Writ Applications with similar issues raised and disposed of them together. The lead matter, Special Civil Application No. 21615 of 2019, was treated as the primary case for convenience. The writ applicant sought relief through a writ of mandamus or any appropriate order directing the release of a truck along with goods detained in Ahmedabad since November 5, 2019. The applicant was engaged in trading building materials and had procured vitrified tiles for a company in Hyderabad. The goods were loaded in a truck with all necessary documentation, including an E-way bill. However, the truck was detained by GST Authorities at a checkpost, citing defective documents.

The Court refrained from delving into the alleged breach of tax provisions but noted that a notice for confiscation and penalty imposition had been issued under Section 130 of the Act. Referring to a previous judgment, the Court emphasized the need for the writ applicant to respond to the notice in detail to contest the confiscation. The Court directed the concerned authority to decide on the confiscation notice within 15 days and instructed the applicant to submit a reply promptly. The authority was further directed to make a decision considering the applicant's stance by January 21, 2020, as the goods and vehicle had been detained since November 5, 2019.

The Court clarified that it did not assess the merits of the case and emphasized that the authority need not wait for a reply before taking action. The writ applications were disposed of with the mentioned directions, and direct service was permitted. The judgment highlighted the importance of the writ applicant's detailed response to the confiscation notice and the authority's obligation to make a decision promptly based on the principles outlined in a previous case.

This comprehensive analysis of the judgment from the Gujarat High Court encapsulates the issues, proceedings, and directives provided by the Court in response to the detention of goods and a vehicle by GST Authorities, ensuring a clear understanding of the legal aspects involved in the case.