9911796707
TMI Blog2019 (12) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... that the petitioner's goods in the nature of TMT Bars which were being transported from one place within the State to another, were illegally detained by the authorities along with the transport vehicle in which the goods were being transported. The petitioner was forced to pay up the illegal demand of tax with penalty raised by the respondents only upon which the goods were released. 3. Brief facts are as under: Petitioner is a proprietary concern and is a registered dealer under the Goods and Services Tax Act, 2017 (GST Act, for short). The petitioner is engaged in the business of dealing in TMT Bars of different dimensions. In the course of such business, the petitioner had purchased 3(three) bars of different measurements weighing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel for the State authorities opposed the petition contending that the said order dated 25.10.2018 is an appealable order. The petitioner has directly approached this Court without availing such appeal. 7. In our opinion, the action of the State authorities cannot be approved. The order dated 25.10.2018 is not an order of assessment of the petitioner's tax liability. It is merely an order of demand of tax and penalty. Before such demand can be confirmed and penalty levied, the petitioner must have a minimum opportunity of hearing. Quite apart from the question of levying basic tax, the authorities proceeded to impose penalty, which is in the nature of a penal action, without hearing the petitioner. The rate of the penalty, even if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication, and the said person shall be liable to produce the documents and devices and also allow the inspection of goods." 9. Sub-sections (1) and (2) of Section 68 authorize the Government to require the person in charge of conveyance of carrying consignment of goods to carry documents as may be prescribed and the manner of validating such documents. Subsection (3) of Section 68 provides that where any conveyance referred to in sub-section (1) is inspected by the proper officer he may require the person in charge of the conveyance to produce the documents so prescribed and the said person would be liable to produce the documents and allow inspection of goods. 10. Section 129 of the said Act pertains to detention, seizure and release of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. (3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c). (4) No tax, interest or penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard. (5) On payment of amount referred in subsection (1), all proceedings in respect of the notice specified in sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vides that the proper officer detaining or seizing the goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter pass an order for payment of tax and penalty under clause (a) or (b) or (c). Sub-section (4) of Section 129 further clarifies that no tax, interest or penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard. 13. The determination of payable tax and interest in terms of clause (a) or (b) of sub-section (1) upon payment of which the goods or the transport vehicle would be released or upon furnishing security in terms of clause (c), has to be after a notice to the person concerned and granting an opportunity of being heard in this res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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