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TMI Blog2020 (3) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... nd set aside the Show-Cause Notice dated 28.05.2019 (Annexure-A) issued by the respondent no.3. (b) Pending the admission, hearing and final disposal of this petition, to stay the implementation and operation of the Show Cause Notice at Annexure-A to this petition. (c) direct the respondent no.3 to release the vehicle of the petitioner. (d) direct the respondent no.3 to release the goods worth Rs. 4,72,590/along with the vehicle. (e) any other and further relief deemed just and proper be granted in the interest of justice." 3. We take note of the order passed by this Court dated 12.06.2019, which reads thus: "1. Let Notice be issued to the respondents, returnable on 19th June 2019. Having heard Ms. Vaibhavi K. Parikh, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. On deposit of the said requisite amount, the conveyance as well as the goods shall immediately be released. 4 Post the matter for further hearing on 19th June 2019 along with other allied petitions. Direct service is permitted." 4. While issuing notice, this Court directed the authorities to release the conveyance as well as the goods on the writ depositing an amount of Rs. 1,44,180/with the department. On deposit of the said requisite amount, the conveyance as well as the goods shall immediately be released. 5. The writ applicant availed the benefit of the interm-order passed by this Court and got the vehicle, along with the goods released on payment of the tax amount. The proceedings, as on date, are at the stage of show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 subsection( 2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 consequences of such goods or the conveyance confiscated under Section 130 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 necessary for the authority under the Act to state reasons for its belief. F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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