2020 (2) TMI 338 - HC - GST

Release of confiscated goods alongwith vehicle - e-way bill not generated - under-valuation - the petitioner has already deposited tax and penalty as per the provisions of section 129 of the Goods and Services Tax Act - HELD THAT - We are convinced with the submissions of Mr.Sheth, as regards the legality and validity of the impugned order of confiscation in Form GST MOV-11 - this Writ Application is allowed, in part. The impugned order of confiscation, in Form GST MOV-11, is hereby quashed and set aside. The matter is remitted to the respondent No.2 for fresh consideration, so far as the issue of confiscation is concerned.

Summary

Issues Involved:
Challenge to detention and confiscation orders under Article 226 of the Constitution of India.

Analysis:
1. The writ applicant sought relief through a writ of certiorari to quash the detention and confiscation orders. An interim order directed the release of the goods pending the final outcome of the petition.
2. The Court examined the grounds for confiscation, including the absence of an e-way bill and undervaluation, referencing a previous judgment for clarification on invoking Section 130 of the Act for confiscation.
3. The Court emphasized the need for authorities to closely examine contraventions and intent to evade tax before invoking Section 130. It highlighted the importance of forming a strong case and recording reasons for belief in writing.
4. The Court found the impugned confiscation order lacking in application of mind and legal validity, leading to quashing of the order and remittance for fresh consideration based on the principles outlined in the referenced judgment.
5. The judgment provided detailed guidance on the proper application of confiscation provisions, stressing the need for genuine belief and intense application of mind to avoid unnecessary detention of goods and conveyances.

This comprehensive analysis covers the legal issues raised in the judgment, the arguments presented, and the Court's reasoning leading to the final decision to quash the confiscation order and remit the matter for fresh consideration.