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2020 (3) TMI 352 - HC - GSTRelease of seized goods alongwith vehicle - section 129 and 130 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 is now for the applicant to make good his case that the show cause notice, issued in GSTMOV-10, deserves to be discharged. Application disposed off.
Issues:
1. Validity of Show-Cause Notice under Section 130 of the Act. 2. Release of vehicle and goods seized by authorities. 3. Interpretation of Sections 129 and 130 of the Central Goods and Services Act, 2017. Analysis: Issue 1: Validity of Show-Cause Notice under Section 130 of the Act The petitioner sought to quash a Show-Cause Notice dated 28.05.2019 issued by respondent no.3. The Court acknowledged the petitioner's strong prima facie case for an interim order in their favor. The petitioner, engaged in the business of manufacturing and trading, had goods seized while in transit. The principal issue raised was the legality and validity of the notice under Section 130 of the Act. The Court directed the authorities to release the conveyance and goods upon the petitioner depositing a specified amount with the department. The Court emphasized the need for a strong case before invoking Section 130 at the threshold, requiring authorities to record reasons for belief in writing. Issue 2: Release of Vehicle and Goods Seized Following the Court's interim order, the petitioner had the vehicle and goods released on payment of the tax amount. The proceedings were at the show cause notice stage under Section 130 of the Act. The Court disposed of the application, making the rule absolute to the extent mentioned. The authorities were directed to release the conveyance and goods upon depositing the requisite amount. The Court highlighted the penal nature of confiscation under Section 130 and the need for a strong case before invoking it. Issue 3: Interpretation of Sections 129 and 130 of the Act The Court referenced a previous judgment to emphasize the importance of examining contraventions closely and determining intent to evade tax before invoking Section 130. It highlighted the need for authorities to have justifiable grounds and reasons for issuing a confiscation notice under Section 130 at the threshold. The Court stressed that all contraventions may not warrant confiscation and that authorities must act in good faith, with intense application of mind, to avoid unnecessary detention of goods and conveyances. It clarified that the action must not be a mere pretense but based on genuine belief supported by material. In conclusion, the judgment addressed the validity of the Show-Cause Notice, the release of seized goods, and the interpretation of Sections 129 and 130 of the Act, emphasizing the need for authorities to have a strong case and genuine belief before invoking confiscation under Section 130.
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