2020 (10) TMI 897 - HC - GST

Confiscation of goods alongwith vehicle - Areca Nuts - writ applicant is here before this Court with a prayer that the goods and the vehicle may ordered to be released pending the confiscation proceedings - HELD THAT - As the confiscation proceedings are pending, we are not inclined to grant any relief as prayed for at this point of time. It is expected that the writ applicant to participate in the confiscation proceedings and make good his case that no case for confiscation is made out. If the writ applicant wants provisional release of the goods and the vehicle, it is always open for him to prefer an application before the concerned authority under Section 67(6) of the Act, 2017. This writ application stands disposed of.

Summary

Issues:
- Writ application under Article 226 seeking various reliefs, including quashing of impugned orders under Sections 129 and 130 of GST Act, release of seized goods and vehicle, and interim reliefs.

Analysis:
1. The writ applicant, engaged in the business of Areca Nuts, faced seizure of goods and vehicle under Section 129 of the GST Act. The interception occurred due to discrepancies in the delivery details, absence of business presence at the stated location, missing GSTIN in invoices, excess quantity of goods without proper documentation, and suspicious transaction patterns.

2. The investigation revealed irregularities in the taxable person's operations, including discrepancies in GST returns, questionable outward supplies, unexplained inward supplies, mismatch in e-way bills, and inconsistent business activities. These discrepancies raised suspicions regarding the legitimacy of the transactions and the compliance of the taxable person with GST regulations.

3. The matter progressed to Form GST MOV-10, initiating confiscation proceedings under Section 130 of the Act. The writ applicant sought release of goods and vehicle pending the confiscation process. However, the court declined immediate relief, directing the applicant to participate in the confiscation proceedings and present a case against confiscation. The court advised the applicant to follow due process by submitting an application for provisional release under Section 67(6) of the Act.

4. The judgment emphasized that the court refrained from delving into the merits of the case, focusing solely on the procedural aspect of the confiscation proceedings. The applicant was encouraged to engage in the legal process and avail remedies provided by the law, ensuring a fair and lawful resolution to the dispute.

This comprehensive analysis highlights the key legal issues, procedural steps, and the court's guidance in the judgment regarding the writ application under consideration.