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2021 (7) TMI 424 - HC - GSTConfiscation of conveyance - Petitioner/owner has not been granted an opportunity of hearing before passing the said order of confiscation - principles of natural justice - HELD THAT - Without going into the merits of the case, it is directed that the petitioner shall be at liberty to pay ₹ 2,31,234/- towards the amount of fine in lieu of the confiscation of the conveyance in question as contemplated in the proviso to Sub-section (2) of Section 130 of the CGST Act, before the concerned respondent authority within a week from today. If such payment is made by the petitioner, then the concerned respondent authority i.e. respondent No.1 shall release the conveyance in question forthwith. The impugned order dated 21.11.2020 (in Form GST-MOV-11) to the extent of confiscation of the conveyance in question is set aside - It is clarified that the Court has not gone into the merits of the case, nor has gone into the issue of legality and validity of the confiscation of goods in question. The petition stands disposed of.
Issues:
Petition challenging confiscation of truck without opportunity of hearing and option to pay fine under CGST Act. Analysis: The petitioner, claiming ownership of a seized truck, challenged the confiscation order passed by the State Tax Officer without granting an opportunity of hearing. The petitioner argued that they were not given the option to pay a fine equal to the tax payable on the goods being transported, as allowed under the proviso to Sub-section (2) of Section 130 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner also pointed out an arithmetical error in the tax amount calculation in the impugned order. The petitioner expressed readiness to pay the fine of ?2,31,234 towards tobacco and pan masala mentioned in the order to secure the release of the conveyance, while reserving the right to challenge the tax calculation error before the concerned authority. The Advocate General for the respondent stated no objection to the petitioner's submission. Consequently, the Court directed the petitioner to pay the fine amount within a week to the concerned authority as per the proviso under Section 130(2) of the CGST Act. Upon payment, the respondent authority was instructed to release the conveyance immediately. The petitioner retained the right to raise the tax calculation issue before the authority, with the assurance that it would be considered in accordance with the law. If dissatisfied with the authority's decision, the petitioner could seek remedies available under the CGST Act. The Court set aside the confiscation order regarding the conveyance without delving into the case's merits or the legality and validity of the goods' confiscation. The judgment clarified that it did not address the legality or validity of the goods' confiscation. With the specified directions, the petition was disposed of, subject to compliance with the payment of the fine amount and the petitioner's right to contest the tax calculation issue before the authority.
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