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2020 (3) TMI 236 - HC - GSTRelease of detained goods alongwith truck - sections 129 and 130 of the Central Goods and Services Tax Act, 2017 - HELD THAT - The writ applicant availed the benefit of the interm-order passed by this Court and got the vehicle, along with the goods released on payment of the tax amount. The proceedings, as on date, are at the stage of show cause notice, under Section 130 of the Central Goods and Services Act, 2017. The proceedings shall go ahead in accordance with law. It shall be open for the writ applicant to point out the recent pronouncement of this Court in the case of SYNERGY FERTICHEM PVT. LTD VERSUS STATE OF GUJARAT 2020 (2) TMI 1159 - GUJARAT HIGH COURT . It is now for the applicant to make good his case that the show cause notice, issued in GST-MOV- 10, deserves to be discharged. Application disposed off.
Issues involved:
Challenge to impugned Notice in Form GST MOV-10 | Release of truck and goods | Compliance with statutory provisions | Interpretation of Sections 129 and 130 of the Central Goods and Services Tax Act, 2017 | Application of mind by authorities in confiscation cases | Requirement of strong case for invoking Section 130 at the threshold Analysis: 1. Challenge to impugned Notice: The petitioner sought a writ to quash an impugned Notice in Form GST MOV-10 issued by the Respondent No.2. The petitioner also requested the release of the truck and goods contained therein. The Court noted the petitioner's compliance with tax and penalty payments under Section 129 of the IGST Act, allowing the release of the vehicle and goods subject to an undertaking from the petitioner. 2. Compliance with statutory provisions: The Court emphasized the importance of procedural compliance under Sections 129 and 130 of the Act. It highlighted that the officer must issue a notice under Section 129, provide an opportunity for a hearing, and only then resort to Section 130 if there is non-compliance. The Court directed the authorities to consider the nature of contravention and intent to evade tax before initiating confiscation proceedings under Section 130. 3. Interpretation of Sections 129 and 130: The judgment delved into the detailed provisions of Sections 129 and 130 of the Act. It outlined the steps required for detention and seizure of goods, issuance of notices, and the distinction between tax payment under Section 129 and confiscation under Section 130. The Court stressed the need for authorities to apply their minds judiciously before invoking Section 130 at the outset. 4. Application of mind in confiscation cases: The Court cautioned against the automatic invocation of Section 130 without proper examination of contraventions and intent to evade tax. It highlighted the need for authorities to have justifiable grounds and reasons for initiating confiscation proceedings. The judgment underscored that confiscation is a penal action and should be based on strong evidence of tax evasion. 5. Requirement of strong case for invoking Section 130: The judgment concluded by emphasizing that authorities must establish a robust case before invoking Section 130 at the initial stage. It stressed the importance of recording reasons for belief in writing and ensuring a genuine application of mind to prevent unnecessary detention of goods and vehicles. The Court highlighted the need for transparency and material disclosure in confiscation notices to uphold fair procedures. In summary, the judgment addressed the procedural and substantive aspects of the case, emphasizing the importance of statutory compliance, proper application of mind by authorities, and the necessity of strong grounds for invoking confiscation under Section 130.
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