2024 (2) TMI 474 - HC - GST

Detention of goods alongwith conveyance - details of the supplier of the confiscated goods were not provided to the petitioner in the show cause notice - violation of principles of natural justice - HELD THAT - The respondents are ready and willing to give a fresh opportunity of hearing to the petitioner by providing all the details so as to comply with the principles of natural justice. This petition is disposed of by quashing and setting aside the impugned order dated 11th December 2023 passed by the respondent No. 2 under Section 130 of the GST Act so as to provide an opportunity of hearing to the petitioner and the petitioner shall be entitled to raise all the contentions which are raised in this petition before the respondent authorities along with an application to release the goods and conveyance on appropriate conditions, which may be imposed by the respondents authorities in accordance with law. The impugned order dated 11th December 2023 passed in Form GST MOV 11 set aside only on the ground of breach of principles of natural justice in absence of not providing an opportunity of hearing to the petitioner and the matter is remanded back to the respondent No. 2 to grant such opportunity in accordance with law - petition allowed by way of remand.

Summary

Issues involved:
The issues involved in this case include a petition under Article 226 of the Constitution of India seeking relief against a detention order, confiscation of goods, and breach of principles of natural justice in a matter related to the Gujarat Goods and Services Tax Act, 2017.

Detention Order and Confiscation of Goods:
The petitioner sold goods to a buyer in Gujarat and during transit, the goods were intercepted by the State Tax Officer. Subsequently, a detention order was passed, and a notice for confiscation was issued. The petitioner responded to the notice and attended a hearing. The petitioner challenged the detention order and confiscation on the grounds that all necessary documents were available during interception. The Senior Advocate argued that the confiscation order was based on details not provided in the show cause notice. The Court disposed of the petition by quashing the confiscation order due to a breach of natural justice principles and remanded the matter back to grant the petitioner an opportunity for a hearing.

Breach of Principles of Natural Justice:
The Court found that the impugned order passed for confiscation of goods and conveyance under Section 130 of the GST Act lacked sustainability as it referred to facts not included in the show cause notice. The respondent authorities agreed to provide a fresh opportunity for a hearing to comply with natural justice principles. Consequently, the Court quashed the order under Section 130 of the GST Act, emphasizing the need for a fair hearing and remanded the matter back to grant the petitioner an opportunity for a hearing in accordance with the law. The Court did not delve into the merits of the case, keeping the contentions raised by the petitioner open for further consideration.