GST confiscation needs a bona fide basis of tax evasion; writ relief was refused against notice-stage proceedings.

GST confiscation proceedings at the threshold require material supporting a bona fide, recorded belief of intent to evade tax; a routine or suspicion-based invocation is not justified. In the present writ challenge to a detention order and show cause notice under Section 130, the goods and conveyance had already been released on payment of tax under an interim order, and the court declined to interfere at the notice stage. No writ relief was granted, and the applicant was left to contest the notice in accordance with law while the statutory adjudication continued.

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Issues: Whether the writ application challenging the detention order and show cause notice under the GST law deserved interference at the stage of notice under Section 130.

Analysis: The proceedings were at the stage of show cause notice and the goods and conveyance had already been released on payment of tax in terms of the interim order. The controlling principle referred to was that invocation of confiscation at the threshold requires a strong factual basis showing a definite intent to evade tax, and that mere suspicion or a routine notice is not sufficient. The applicant was left at liberty to rely on the earlier pronouncement explaining the relationship between detention, release on tax payment, and confiscation proceedings, but the matter was not taken to a final merits determination in the writ proceedings.

Conclusion: No writ relief was granted against the detention and show cause notice, and the applicant was relegated to contest the notice in accordance with law.

Final Conclusion: The writ petition was disposed of without quashing the impugned proceedings, leaving the statutory adjudication to continue.

Ratio Decidendi: Confiscation proceedings at the threshold under the GST law require material showing a bona fide and recorded belief of intent to evade tax, and a mere routine or suspicion-based invocation is not justified.

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