2020 (5) TMI 28 - HC - GST

Release of confiscated goods alongwith vehicle - section 129 of CGST Act - 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 Form GST-MOV-10, deserves to be discharged. Application disposed off.

Summary

Issues:
Challenge to Notice in Form GST MOV-10 | Release of Truck and Goods | Compliance with Legal Proceedings

Analysis:

1. Challenge to Notice in Form GST MOV-10:
The petitioner sought relief by challenging the Notice in Form GST MOV-10 dated 9.3.2019 issued by the Respondent No.2. The court noted a previous order directing the release of the truck and goods upon payment of applicable tax. The petitioner had already availed this benefit and got the vehicle released. The proceedings were at the show cause notice stage under Section 130 of the Central Goods and Services Act, 2017. Reference was made to a recent judgment by the court in a similar case, emphasizing the importance of examining contraventions closely and the intent to evade tax before invoking confiscation under Section 130.

2. Release of Truck and Goods:
The court directed the release of Truck No. GJ-01 DT 5949 along with the goods contained therein, as the petitioner had made a categorical averment that the tax and penalty had been paid. The court highlighted the need for authorities to closely consider the nature of contraventions and the intent to evade tax before initiating confiscation proceedings. It was emphasized that confiscation under Section 130 should be based on strong grounds, with reasons recorded in writing, and not merely on suspicion. The judgment clarified that not all contraventions automatically warrant confiscation, and the action must be taken in good faith without being a mere pretense.

3. Compliance with Legal Proceedings:
The court disposed of the writ application, making the rule absolute to the extent mentioned. It was stated that the applicant needed to establish that the show cause notice issued in GST MOV-10 should be discharged. The judgment underscored the importance of authorities forming their opinions in good faith, based on concrete grounds, and ensuring that confiscation actions are not arbitrary but justified by the circumstances of each case.

In conclusion, the judgment addressed the challenges to the Notice in Form GST MOV-10, emphasized the release of the truck and goods upon payment, and highlighted the necessity for authorities to act judiciously and in good faith when invoking confiscation under Section 130 of the Act.