Reasoned confiscation under GST law is mandatory; a perfunctory order ignoring objections cannot be sustained.

A confiscation order under GST law must record reasons and show meaningful consideration of the taxpayer's objections before it can be sustained. Where the authority acted perfunctorily, failed to address the objections, and did not reflect reasoned application of mind despite production of invoice and e-way bill, the order was found unsustainable. The Gujarat HC therefore quashed the confiscation order under Section 130 of the Gujarat GST Act, while reserving liberty for the authority to proceed afresh in accordance with law if material emerges against the taxpayer.

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Issues: Whether the confiscation order passed under Section 130 of the Gujarat Goods and Services Tax Act, 2017 was liable to be quashed for want of reasons and for non-consideration of the objections raised by the petitioner.

Analysis: The impugned order was found to have been passed perfunctorily and without application of mind to the objections filed by the petitioner. The record showed that the conveyance had been detained despite the production of invoice and e-way bill, and the order did not reflect a reasoned consideration of the petitioner's case. In these circumstances, the Court held that the confiscation order suffered from a patent lack of reasoning and could not be sustained.

Conclusion: The confiscation order was quashed and set aside, with liberty to the authority to invoke Section 130 of the Gujarat Goods and Services Tax Act, 2017 if material is found against the petitioner.

Final Conclusion: The petition succeeded to the extent of setting aside the confiscation order, and the dispute was disposed of with liberty reserved to the authority to proceed afresh in accordance with law.

Ratio Decidendi: A confiscation order under the goods and services tax law must be reasoned and must show due consideration of the objections raised before it can be sustained.

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