2019 (9) TMI 1276 - HC - GST

Seizure of vehicle alongwith the goods - failure to generate E-way bill - section 130 of the Central Goods and Services Tax Act, 2017 - HELD THAT - The court is of the opinion that the petitioner may respond to the notice issued under section 130 of the CGST Act and submit its response thereto. It appears that the petitioner has already given a reply dated 19.09.2019, Annexure 'F' to the petition. Nonetheless, if the petitioner is desirous to make any further submissions, he may appear before the second respondent on 04.10.2019. The petition is partly allowed with a direction to the second respondent to forthwith release the truck along with the goods contained therein as the petitioner has already paid the amount of tax and penalty, subject to the final outcome of the proceedings under section 130 of the CGST Act and under other relevant statutory provisions.

Summary

Issues Involved:
- Confiscation of goods under section 130 of the Central Goods and Services Tax Act, 2017
- Failure to generate e-way bill for one of the consignments

Analysis:

Confiscation of Goods under Section 130 of the CGST Act:
The petitioner, a limited company engaged in manufacturing, had orders to supply Calcined Bauxite to Calderys India Refractories Limited. Due to inadvertence, an e-way bill was not generated for one of the consignments, resulting in the interception and seizure of the goods by the second respondent. The impugned notice for confiscation of the goods was issued under section 130 of the CGST Act. The main contention raised was that the respondents should have first resorted to the provisions of section 129 of the CGST Act. However, the court did not delve into this controversy, indicating a different view on the matter.

Payment of Tax and Penalty for Release of Goods:
Upon the seizure of the vehicle, the petitioner promptly paid the tax and penalty. The petitioner's advocate argued for the release of the goods and conveyance, subject to the final outcome of the proceedings under section 130 of the CGST Act. It was emphasized that the petitioner is a reputable entity, not a fly-by-night operator, and there is no reason to doubt their ability to comply with any potential orders for recovery.

Court's Direction and Decision:
The court, after considering the submissions, directed the second respondent to release the truck and goods as the tax and penalty had already been paid. The petitioner was instructed to appear before the second respondent on a specified date for further proceedings under section 130 of the CGST Act. The court's decision partially allowed the petition, with a direction for the release of the goods, subject to the final outcome of the proceedings. The second respondent was tasked with passing a reasoned order after providing an opportunity for the petitioner to be heard.

Conclusion:
In conclusion, the judgment addressed the issue of confiscation of goods under the CGST Act due to the failure to generate an e-way bill. The court's decision balanced the interests of the petitioner by allowing the release of goods upon payment of tax and penalty, while also ensuring compliance with the statutory provisions for further proceedings.