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2020 (4) TMI 305 - HC - GSTRelease of detained goods alongwith conveyance - section 129 of GST Act - HELD THAT - By way of an interim measure, the respondents are directed to release the detained goods together with the conveyance, subject to the petitioner paying the tax and penalty as computed by the respondent authorities and also subject to filing a solemn undertaking before this court to the effect that the petitioner shall make good the deficit liability, if any, as may be determined finally by the authorities for the goods as well as for the vehicle/s subject to the petitioner's right to challenge the same in accordance with law. It shall be open for the writ applicantd 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 applicants to make good his case that the show cause notice, issued in GST MOV-10, deserves to be discharged - Application disposed off.
Issues:
Challenge to letters dated 28.04.2019 and 30.04.2019, detention of raw materials and truck, release of goods, interim relief, recent pronouncement of the court, interpretation of Sections 129 and 130 of the Central Goods and Services Act, 2017. Analysis: The writ applicants sought relief through a Writ Application under Article 226 of the Constitution of India, challenging letters dated 28.04.2019 and 30.04.2019, detention of raw materials listed in a Delivery Challan dated 08.04.2019, and a truck bearing registration number GJ10TV6543. They requested the release of the detained goods and the truck, along with an ex-parte ad-interim relief. The court noted a previous order directing release of the goods upon payment of tax and penalty, subject to filing a solemn undertaking. The applicants availed this interim measure and got the vehicle and goods released. The proceedings were at the show cause notice stage under Section 130 of the CGST Act, 2017, to proceed in accordance with the law. The court referred to a recent judgment and emphasized the need for authorities to closely examine contraventions of the Act or Rules during detention and seizure of goods. It highlighted the importance of intent to evade tax and the presumption of culpable mental state under Section 135. The judgment stressed that confiscation under Section 130 should be based on a strong case, not mere suspicion. Authorities were urged to record reasons for invoking Section 130 at the threshold and disclose materials forming their belief. The judgment clarified that not every contravention warrants confiscation, emphasizing good faith and intense application of mind in invoking Section 130. The court concluded the writ application, leaving it to the applicants to argue for the discharge of the show cause notice issued under GST MOV-10. The application was disposed of, with the rule made absolute to the specified extent. The judgment provided a detailed analysis of Sections 129 and 130 of the CGST Act, 2017, emphasizing the importance of justifiable grounds for invoking confiscation provisions and the need for authorities to act in good faith with a strong basis for their actions.
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