GST confiscation notice challenged for bypassing statutory procedure and omitting material particulars before penalty action

A GST confiscation notice was challenged as premature because action under the confiscation provision was alleged to have been taken without first following the notice-and-hearing procedure required for detention and tax recovery. The notice was also said to contain blank material particulars, suggesting non-compliance with the prescribed statutory sequence before invoking confiscation and penalty. The court issued notice to the respondents on costs and left open the release of the vehicle and goods on payment of the tax amount stated in the notice.

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Issues: Whether the impugned notice for confiscation of goods or conveyance and levy of penalty under section 130 could be issued without initiation of proceedings under section 129, and whether the notice disclosed non-compliance with the prescribed statutory procedure.

Analysis: The notice was assailed on the ground that section 129 requires issuance of notice and an opportunity of hearing before further action, and that resort to section 130 is permissible only on non-compliance with an order under section 129. The notice itself contained blanks in material portions, indicating that the steps contemplated by the statutory scheme had not been completed before its issuance.

Outcome: Notice was issued to the respondents and they were called upon to show cause on the question of costs. In the meantime, release of the vehicle and goods was left open on payment of the tax amount mentioned in the notice.

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