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TMI Blog2020 (2) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... her appropriate writ, order or direction quashing and setting aside notice dated 29.07.2019 issued in Form GST MOV-10 under Section 130 of the Central/ Gujarat Goods and Services Tax Act, 2017/ the Integrated Goods and Service Tax Act, 2017' [B] be pleased to issue a writ of mandamus and/or a writ in the nature of mandamus and/or any other appropriate writ order or direction to forthwith release of Truck Number GJ-04-X-6742 along with goods contained therein detained/ seized under the GST Acts; [C] pending the hearing and final disposal of this petition, be pleased to direct the learned respondent authorities to forthwith release Truck No.GJ-04-X-6742 along with the goods contained therein; [D] for ex-parte ad-interim relief in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ency of this writ-application, the writ applicant is entitled to an interim order. 5. We take notice of the fact that the writ-applicant has deposited an amount of Rs. 2,33,154/- towards the tax liability and penalty. The payment receipt is at page 19 at Annexure C. 6. In such circumstances, referred to above, the respondent no.2 is directed to forthwith release the vehicle as well as the goods. Direct service today is permitted." 3. 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. 4. 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cance. The reason why we are saying so is that for the purpose of release of the goods and conveyance detained while in transit for the contravention of the provisions of the Act or the rules, the section provides for release of such goods and conveyance on payment of the applicable tax and penalty or upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) to Clause (1) of Section 129. Section 129(2) also provides that the provisions of sub-section (6) of Section 67 shall mutatis mutandis apply for detention and seizure of goods and conveyances. We quote Section 67(6) as under;"67(6) The goods so seized under sub-section( 2) shall be released, on a provisional basis, upon execution of a bond and furnishing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the department only in the cases of prosecution and not for the purpose of Section 130 of the Act. What we are trying to convey is that in a given case, the contravention may be quite trivial or may not be of such a magnitude which by itself would be sufficient to take the view that the contravention was with the necessary intent to evade payment of tax. 102. In such circumstances, referred to above, we propose to take the view that in all cases, without any application of mind and without any justifiable grounds or reasons to believe, the authorities may not be justified to straightway issue a notice of confiscation under Section 130 of the Act. For the purpose of issuing a notice of confiscation under Section 130 of the Act at the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified. The resultant effect of such issue of confiscation notice at the very threshold, without any application of mind or without there being any foundation for the same, renders Section 129 of the Act practically otiose. We take cognizance of the fact that once the notice under Section 130 of the Act is issued, then the vehicle is not released even if the owner of the goods is ready and willing to pay the tax and the penalty that may be determined under Section 129 of the Act. Such approach leads to unnecessary detention of the goods and the conveyance for an indefinite period of time. Therefore, what we are trying to convey is that all cases of contravention of the provisions of the Act or the Rules, by itself, may not attract the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be formed is not subject to objective test. The language of Section 130 of the Act leaves no room for the relevance of an official examination as to the sufficiency of the ground on which the authority may act or proceed for the purpose of confiscation at the very threshold. But, at the same time, there must be material based on which alone the authority could form its opinion in good faith that it has become necessary to call upon the owner of the goods as well as the owner of the conveyance to show-cause as to why the goods and the conveyance should not be confiscated under Section 130 of the Act. The notice for the purpose of confiscation must disclose the materials, upon which, the belief is formed. It could be argued that it is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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