2023 (12) TMI 1137 - HC - GST

Seeking release of vehicle and the goods - invoice showing different detail - petitioner was ready to pay the penalty and fine - HELD THAT - The exigency of the situation regarding the vehicle and the goods is over and the petitioner who is a consigner will necessarily have to reply to the show cause notice whether the circumstances spelled out in the show cause notice had any substance. The show cause notice shows the reference to invoice no. 201 dated 16.08.2023 in favour of Durga Multimetals Pvt. Ltd. for a sum of Rs. 12,75,885/- had a grand total of Rs. 15,05,545/- dated 16.08.2023, the date when the vehicle was detained. The invoice which has been placed on record as Annexure P-1 would go on to show that the goods had been consigned by Rajan Trading Corporation at Rajkot to the petitioner and carries a separate detail. The genuineness of the facts and transit would require further verification and it has specifically been mentioned that it was entrusted from M/s Rajan Trading Corporation at Rajkot and Section 16(2)(c) of the Act needs verification from the books of account. The Apex Court in THE STATE OF PUNJAB VERSUS M/S SHIV ENTERPRISES ORS. 2023 (1) TMI 842 - SUPREME COURT has held that it is not for this Court to entertain the writ petition against the show cause notices and has set aside the order of this Court while not interfering in the order whereby the goods had been released. Keeping in view the settled position and the fact that the matter has to be gone into by the competent authority, the present writ petition is disposed off with liberty to the petitioner to file his response to the said notice. It is open to the authorities to take action in accordance with law.

Summary

Issues involved:
The issues involved in the judgment are the quashing of a notice for confiscation of goods under the Punjab Goods & Services Tax Act and Central Goods & Services Tax Act, release of the vehicle and goods, verification of facts and transit, and the authority's discretion to take action.

Judgment Summary:

Quashing of Notice for Confiscation of Goods:
The writ petition sought to quash a notice in Form GST MOV-02 dated 16.08.2023, where respondent authorities intercepted goods and conveyance carrying iron scrap goods. A notice for confiscation of the goods and imposition of tax, penalty, and other charges under relevant tax Acts was issued. The petitioner requested the quashing of the notice.

Release of Vehicle and Goods:
The petitioner also requested the release of the vehicle and goods, which was granted by a Co-ordinate Bench on 31.08.2023, subject to a deposit of 25% in cash and the remaining in the form of a personal bond with surety. The petitioner indicated readiness to pay the penalty and fine specified in the notice.

Verification of Facts and Transit:
The show cause notice referenced an invoice in favor of Durga Multimetals Pvt. Ltd., indicating a consignment by Rajan Trading Corporation to the petitioner. The genuineness of the facts and transit required further verification, with specific reference to Section 16(2)(c) of the Act and the need to examine books of account.

Authority's Discretion to Take Action:
The judgment highlighted the need for the competent authority to investigate the matter further, as per the Apex Court's ruling in a similar case. The Court disposed of the writ petition, allowing the petitioner to respond to the notice and granting authorities the discretion to take action in accordance with the law.