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2020 (4) TMI 494 - HC - GSTRelease of detained goods alongwith conveyance - section 130 of GST Act - While issuing notice, this Court directed that the vehicle as well as the goods be released, upon payment of the tax, in terms of the impugned notice - 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 2019 (12) TMI 1213 - GUJARAT HIGH COURT . It is now for the applicant to make good his case that the show cause notice, issued in Form GST-MOV-10, deserves to be discharged - Application disposed off.
Issues:
- Release of truck and goods - Quashing of notice for proposed confiscation under GST Act - Direction to stay further proceedings - Grant of ad-interim relief - Interpretation of Sections 129 and 130 of GST Act Release of Truck and Goods: The writ applicant sought a writ of mandamus for the release of a truck and its goods seized by the authorities. A Coordinate Bench ordered the release upon depositing a specified amount. The applicant availed this interim relief and got the vehicle and goods released by paying the tax amount. The proceedings are now at the show cause notice stage under Section 130 of the Central Goods and Services Act, 2017. Quashing of Notice for Confiscation: The applicant also requested the quashing of a notice proposing confiscation under Section 129 of the GST Act. The Court directed the release of the vehicle and goods upon payment of tax as per the notice. The applicant can refer to a previous judgment for arguments related to the nature of contraventions and the intent to evade tax in such cases. Direction to Stay Further Proceedings: The applicant was granted ad-interim relief by the Court, allowing the release of the vehicle and goods upon depositing a specified amount. The Court emphasized the need for authorities to closely examine contraventions and intent to evade tax before invoking Section 130 of the Act. It highlighted the importance of forming a strong case before taking action under Section 130 at the detention and seizure stage. Interpretation of Sections 129 and 130 of GST Act: The judgment referred to the provisions of Sections 129 and 130 of the GST Act, emphasizing the need for authorities to assess contraventions and intent to evade tax before initiating confiscation proceedings. It outlined that confiscation under Section 130 is a penal action meant to deter tax evasion, requiring a strong case and intense application of mind. The judgment clarified that not every contravention automatically leads to confiscation and stressed the importance of justifiable reasons for invoking Section 130 at the initial stage. In conclusion, the writ application was disposed of with the rule being made absolute to the extent mentioned, leaving it to the applicant to establish why the show cause notice issued should be discharged.
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