2020 (2) TMI 493 - HC - GST

Levy of penalty and redemption fine in lieu of confiscation of goods - section 130 of CGST Act - requisite amount already paid - validity of SCN - HELD THAT - Pursuant to the notice issued under Section 129 of the Act determining the amount to be paid towards the tax and liability, the requisite amount has been paid by the writ-applicant and the conveyance and the goods have been released. It appears that later, a show-cause notice came to be issued under Section 130 of the Act calling upon the writ-applicant to show-cause why the goods and conveyance should not be confiscated. As the matter is now at the stage of MOV-10, the writ-applicant shall appear before the authority and file an appropriate reply to make good his case that the notice issued in GST MOV-10 deserves to be discharged - Application disposed off.

Summary

Issues:
1. Quashing of notice under Section 130 of the Central Goods and Services Tax Act, 2017.
2. Release of confiscated goods and vehicle.
3. Challenge of show-cause notice under Section 130 of the Act.
4. Applicability of recent court pronouncement in a similar case.

Analysis:

1. The petitioner sought relief through a writ-application under Article 226 of the Constitution of India to quash the notice issued by Respondent No.2 under Section 130 of the Central Goods and Services Tax Act, 2017. The petitioner also requested a declaration that the notice was illegal and contrary to the provisions of the Act. Additionally, the petitioner sought the release of confiscated goods and vehicle, along with any other deemed fit and proper reliefs in the interest of justice.

2. In response to the petitioner's application, the Court ordered the release of the detained goods and conveyance, subject to the petitioner paying the tax and penalty as determined by the authorities. The petitioner was also required to file a solemn undertaking ensuring the payment of any deficit liability. The Court directed the petitioner to challenge the authorities' decision in accordance with the law and submit necessary identification documents for the release of goods and the vehicle.

3. Following the payment of the requisite amount towards tax and liability, the goods and conveyance were released. However, a show-cause notice was subsequently issued under Section 130 of the Act, prompting the petitioner to defend against the confiscation of goods and conveyance. The Court directed the petitioner to appear before the authority and provide a suitable reply to contest the notice issued in GST MOV-10, allowing reliance on a recent court judgment in a similar case for support.

4. The Court disposed of the writ-application at the stage of MOV-10, permitting direct service. The petitioner was instructed to appear before the authority, file a response to challenge the notice issued under Section 130 of the Act, and utilize the recent court pronouncement in a relevant case to support their arguments.