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TMI Blog2021 (4) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... person who intends to avoid payment of taxes. If any person supplies or misuses any goods in contravention of the provisions of the GST Act or Rules with intend to evade payment of taxes or fails to account for any goods, on which he is liable to pay tax, the provisions of Section 130 of the GST Act applies. Notice issued under section 130 of the GST Act (Ext.P2) makes it clear that, officers of the respondent department during shadow operation noticed two persons entering and coming out of the jewellery shop. The bags held by them were checked and those were found to be containing gold ornaments weighing 2270.13 grams including stone weight. Ext.P2 notice makes it clear that goods were not accompanied by any documents showing or reflec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner further argued that in case of the adverse order, if any, the respondent authority was duty bound to grant time of 14 days to the petitioner to pay the amount of tax and penalty as per the provisions under Section 129(6) of the GST Act. In submission of the learned counsel appearing for the petitioner, in order to impose huge amount of the tax and penalty apart from confiscation of goods, the respondent authority resorted to the provisions of Section 130 of the GST Act and there is no basis for coming to prima facie conclusion that there was an attempt on the part of the petitioner to evade payment of tax under the GST Act. He argued that seized articles were in fact, samples meant for showing the same to the wholesalers for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of the GST Act or the Rules made thereunder. However, Section 130 of the GST Act deals with mens rea of a person who intends to avoid payment of taxes. If any person supplies or misuses any goods in contravention of the provisions of the GST Act or Rules with intend to evade payment of taxes or fails to account for any goods, on which he is liable to pay tax, the provisions of Section 130 of the GST Act applies. Similarly, supplying the goods liable for tax without application for registration as well as contravention of the provisions of the GST Act and Rules with intent to evade payment of tax can also result in action under Section 130 of the GST Act, 2017. Thus act or omission with intention to avoid payment of tax is sin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the considered opinion that the respondent Department has rightly proceeded in the matter by taking notice action under Section 130 of the GST Act,2017 as gold jewellery weighing more than 2 kilograms was found in possession of the petitioner and another person who were entering the jewellery shops and coming out of such shops. The material reflected in the show cause notice reflects mens rea on the part of petitioner. 11. The act on the part of the petitioner while carrying the gold jewelelery in huge quantity and visiting the jewellery shops as reflected from the notice action certainly gives an indication that there was intention to evade payment of taxes as required by the GST Act of 2017. Neither before the authority under the GST ..... X X X X Extracts X X X X X X X X Extracts X X X X
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