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2020 (3) TMI 564 - HC - GSTConfiscation of goods and levy of penalty - details goods alongwith the vehicle have already been released - Section 130 of the Central Goods and Services Act, 2017 - HELD THAT - The writ applicant availed the benefit of the interim-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 shall be open for the writ applicant to point out the recent pronouncement of this Court in the case of SYNERGY FERTICHEM PVT. LTD VERSUS STATE OF GUJARAT 2020 (2) TMI 1159 - GUJARAT HIGH COURT . It is now for the applicant to make good his case that the show cause notice, issued in GST MOV- 10, deserves to be discharged - Application disposed off.
Issues:
- Detention and confiscation orders under GST MOV-6 and GST MOV-10 - Release of truck and goods without payment of tax and penalty - Stay on operation of detention/confiscation orders - Ad interim relief - Recent pronouncement in Synergy Fertichem Pvt.Ltd case Detention and Confiscation Orders: The writ applicant sought relief against the detention order dated 17.09.2019 in Form GST MOV-6 and confiscation notice dated 24.09.2019 in Form GST MOV-10. The Court noted discrepancies in the physical verification report and lack of basis for determining market value. An interim order directed the release of the conveyance and goods pending further proceedings. The applicant availed this relief by paying the tax amount, and the case proceeded under Section 130 of the Central Goods and Services Act, 2017. Release of Truck and Goods: The applicant was granted interim relief for the release of the vehicle and goods upon payment of tax, fine, or penalty if held liable. The proceedings were to continue as per the impugned notice. The applicant benefited from this order and had the vehicle and goods released by paying the tax amount. The case was at the show cause notice stage under Section 130 of the Act. Stay on Operation of Detention/Confiscation Orders: The Court directed a stay on the operation of the detention/confiscation orders while issuing rule returnable on 28th November 2019. The vehicle and goods were released pending payment of applicable tax, fine, or penalty. The applicant was required to file an undertaking for payment subject to challenging it before the appropriate forum. Ad Interim Relief: Ex parte ad interim relief was sought and granted in terms of the prayer C of the application. The Court directed the release of the conveyance and goods upon payment of dues and filing of an undertaking by the applicant. The proceedings were to proceed as per law under Section 130 of the Act. Recent Pronouncement in Synergy Fertichem Pvt.Ltd Case: The Court referred to the case of Synergy Fertichem Pvt.Ltd V/s. State of Gujarat, highlighting observations on the contravention of provisions, intent to evade tax, and the necessity for a strong case to invoke Section 130 of the Act. The judgment emphasized the need for justifiable grounds and application of mind before issuing a notice of confiscation. It clarified the penal nature of confiscation and the importance of forming a strong case before invoking Section 130 at the threshold. In conclusion, the writ application was disposed of, with the rule made absolute to the extent mentioned. The applicant was required to establish that the show cause notice in GST MOV-10 should be discharged based on the recent pronouncements and legal principles discussed in the judgment.
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