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Court allows removal of respondent No. 3 from case. Notice for penalty deemed non-compliant. The court granted leave to delete respondent No. 3 from the array of respondents, indicating a procedural change. The petitioner's argument that the ...
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Court allows removal of respondent No. 3 from case. Notice for penalty deemed non-compliant.
The court granted leave to delete respondent No. 3 from the array of respondents, indicating a procedural change. The petitioner's argument that the notice for confiscation of goods and penalty under section 130 of the Central Goods and Services Act was issued without following the required procedure under section 129 was upheld. The court found the notice to be non-compliant with the Act's provisions, specifically noting a blank space in the document. Notice was issued to the respondents to show cause for non-compliance, with an option to release the goods by paying the tax amount mentioned in the notice.
Issues: 1. Deletion of respondent No. 3 from the array of respondents. 2. Validity of notice for confiscation of goods and levy of penalty under section 130 of the Central Goods and Services Act, 2017 without following the procedure under section 129 of the Act.
Analysis: 1. The court granted leave to delete respondent No. 3 from the array of respondents, indicating a procedural change in the case.
2. The petitioner's advocate highlighted that the notice for confiscation of goods and penalty under section 130 of the CGST Act was issued without following the required procedure under section 129 of the Act. Section 129 mandates issuing a notice and providing an opportunity for a hearing before passing an order. The impugned notice directly imposed penalties without initiating proceedings under section 129, which was deemed impermissible in law.
3. The court observed that the impugned notice had a blank space in paragraph 4, indicating a failure to follow the necessary procedure as mandated by the relevant provisions of the Act. This non-compliance raised concerns about the legality of the actions taken.
4. The court issued notice to the respondents, returnable on a specified date, requiring them to show cause as to why costs should not be imposed for non-compliance with statutory provisions. This step indicates the court's intention to ensure adherence to legal procedures.
5. Additionally, the court clarified that the respondents could release the vehicle and goods by paying the tax amount mentioned in the impugned notice. Direct service for this purpose was permitted, offering a temporary resolution pending further legal proceedings.
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