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2020 (4) TMI 797 - HC - GSTRelease of confiscated goods alongwith the vehicle - section 129(1) of the GST Act - 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 Form GST-MOV-10, deserves to be discharged. Application disposed off.
Issues:
Challenge to detention order and confiscation notice under GST Act, 2017. Analysis: The petitioner filed a Writ Application challenging the detention order and confiscation notice dated 31.7.2019 issued by Respondent No.2 under the GST Act, 2017. The Co-ordinate Bench of the Court noted that the petitioner, engaged in trading of metal scrap, sought release of a seized truck and goods under Sections 129 and 130 of the GST Act. The Court directed immediate release of the truck and goods upon payment of tax. The petitioner availed the interim order and got the vehicle and goods released by paying the tax amount. The proceedings were at the show cause notice stage under Section 130 of the Act. The Court referred to a recent judgment and emphasized that authorities must closely examine contraventions and intent to evade tax before invoking confiscation under Section 130. It highlighted that confiscation should not be a default response and must be based on strong reasons and good faith. The Court emphasized the need for authorities to provide detailed materials and reasons for invoking confiscation. The judgment clarified that every contravention may not warrant confiscation, and action must be taken in good faith, not as a mere pretense. In conclusion, the Court disposed of the writ application, making the rule absolute to the extent that the petitioner could now argue for the discharge of the show cause notice issued under Form GST-MOV-10. The judgment underscored the importance of authorities exercising discretion judiciously and in accordance with the provisions of the Act, ensuring that confiscation is not a knee-jerk reaction but based on genuine grounds and evidence of intent to evade tax.
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