2021 (1) TMI 845 - HC - GST

Confiscation of goods and conveyance - Section 130 of the Central Goods and Services Tax Act, 2017 and Section 130 of the Karnataka Goods and Services Tax Act, 2017 read with Section 20 of Integrated Goods and Service Tax Act, 2017 and Section 11 of the GST (Compensation to States) Act, 2017 - HELD THAT - Taking note of the statement of learned counsel for the respondents that they would abide by the directions as contained in W.P.No.10832/2020, insofar as the procedure for taking forward the proceedings under Sections 129 and 130 are concerned, the present writ petitions could be disposed off in terms of the observations and directions made in W.P.No.10832/2020. The respondents to proceed further and consider the reply made by the petitioner insofar as notice under Section 129 and also with respect to the reply to be submitted to the show cause notice under Section 130. The respondents to also consider the further proceedings under Section 130 after reply is furnished by the petitioner in that regard. Learned counsel for the petitioner is permitted to seek for incriminatory material by addressing the representation within three days from today and said request to be considered as per law by the respondent - authority. Thereafter, within three days from such date of the respondent sharing information as requested and permissible to be shared, reply to the show cause to be furnished by the petitioner and the respondent - authority to take decision thereafter in terms of the observations made above within a period of one week thereafter. Petition disposed off.

Summary

Issues:
Challenge to notice for confiscation of goods and conveyance under GST Acts.

Analysis:
The petitioner challenged a notice dated 02.09.2020 issued by the 1st respondent for confiscation of goods and conveyance under various sections of the Central Goods and Services Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017. The petitioner sought direction to keep the goods in conveyance detained by the 1st respondent under cold storage. The respondents referred to a previous case with similar issues and requested the present petition to be disposed of in line with the observations made in the earlier case. The petitioner's counsel highlighted that the petitioner had already submitted a reply under Section 129(3) of the CGST/KGST Act and requested timely consideration. The petitioner had also appeared before the respondent and submitted their response to the show cause notice. The petitioner's counsel emphasized the need for the petitioner to scrutinize the materials relied upon by the respondent for issuing the show cause notice to defend the proceedings effectively.

The court noted the respondents' willingness to follow the directions from the previous case and instructed them to proceed with considering the petitioner's replies under Section 129 and Section 130 of the Acts. The court allowed the petitioner's counsel to request incriminatory material within three days for scrutiny by the respondent. The petitioner was directed to furnish a reply to the show cause notice within three days of receiving the requested information. The respondent was instructed to make a decision within a week after receiving the petitioner's reply. The respondents assured that a personal hearing opportunity would be provided while considering the reply to the show cause notice. The court disposed of the petition while keeping the contentions of the parties open and also disposed of I.A.No.1/2020 as requiring no further orders.