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TMI Blog2020 (3) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... dent ORAL ORDER PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA 1. By this Writ-Application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs: [A] be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ, order or direction quashing and setting impugned Notice in Form GST MOV-10 dated 2.8.2019 (annexed at Annexure-A) issued by the learned respondent No.2; [B] be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ, order or direction, directing the learned Respondent authorities to forthwith release Truck No.GJ19V0906 alongwith the goods contained therein by quashing and setting aside the detention notice and orders (annexed at Annexure-C); [C] pending notice, admission and final hearing of the petition, be pleased to direct the learned Respondent authorities to forthwith release Truck No.GJ19V0906 alongwith the goods contained therein; [D] Ex parte ad-interim relief in terms of prayer C may kindly be granted; [E] Such further relief(s) as deemed fit in the facts and circumstances of the case ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cle, 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. 5. 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 V/s. State of Gujarat [Special Civil Application No.4730 of 2019]. It shall be open for the writ applicant to rely on the observations made by this Court in Paragraph Nos.99 to 104 of the said judgment, which read thus: 99. It is practically impossible to envisage various types of contravention of the provisions of the Act or the Rules for the purpose of detention and seizure of the goods and conveyances in transit. The contravention could be trivial or it may be quite serious sufficient enough to justify the detention and seizure. This litigation is nothing but an outburst on the part of the dealers that practically in all cases of detention and seizure of goods and conveyance, the authorities would straightway invoke Section 130 of the Act and thereby would straightway issue notice call ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch contravention of the provisions of the Act or the Rules was with an intent to evade the payment of tax. Section 135 of the Act provides for presumption of culpable mental state but such presumption is available 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 threshold, i.e,. at the stage of Section 129 of the Act itself, the case has to be of such a nature that on the face of the entire transaction, the authority concerned is convinced that the contravention was with a definite intent to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of such aggravated form of action is to deter the dealers from evading tax. 104. In the aforesaid context, we would like to clarify that we do not propose to lay down, as a proposition of law, or we should not be understood to have taken the view that, in any circumstances, the authorities concerned cannot invoke Section 130 of the Act at the threshold, I.e., at the stage of detention and seizure. What we are trying to convey is that for the purpose of invoking Section 130 of the Act at the very threshold, the authorities need to make out a very strong case. Merely on suspicion, the authorities may not be justified in invoking Section 130 of the Act straightway. If the authorities are of the view that the case is one of invoking Section 130 of the Act at the very threshold, then they need to record their reasons for such belief in writing, and such reasons recorded in writing should, thereafter, be looked into by the superior authority so that the superior authority can take an appropriate decision whether the case is one of straightway invoking Section 130 of the Act. Any opinion of the authority to be formed is not subject to objective test. The language of Section 130 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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