2021 (2) TMI 827 - HC - GST

Court makes rule absolute in writ application, stresses importance of evaluating contraventions before invoking confiscation.

The court disposed of the writ application, making the rule absolute to a specified extent. Emphasizing the importance of authorities carefully evaluating ... Release the goods as well as the conveyance - Section 130 of the Central Goods and Services Act, 2017 - HELD THAT:- The writ applicant availed the benefit of the interim order passed by this Court and got the vehicle, along with the goods released on payment of the tax amount. The proceedings, as on date, are at the stage of show cause notice, under Section130 of the Central Goods and Services Act, 2017. The proceedings shall go ahead in accordance with law. It shall be open for the writ applicant to point out the recent pronouncement of this Court in the case of Synergy Fertichem Pvt.Ltd Vs. State of Gujarat [2019 (12) TMI 1213 - GUJARAT HIGH COURT] where it was held that It is now for the applicant to make good his case that the show cause notice, issued in Form GSTMOV10, deserves to be discharged - this writ application stands disposed of. Issues:Challenge to detention order and show cause notice under Article 226 of the Constitution of India.Analysis:The petitioner sought relief to quash the detention order and show cause notice, stay the implementation, release goods and conveyance, and other just relief. A Coordinate Bench previously directed the release of goods and conveyance upon payment of tax. The petitioner availed this interim order and got the vehicle and goods released. The proceedings are at the show cause notice stage under Section 130 of the Central Goods and Services Act, 2017. The court referred to a recent judgment and emphasized the need for authorities to closely examine contraventions and intent to evade tax before invoking confiscation under Section 130. The judgment highlighted that not all contraventions automatically justify confiscation and that authorities must have a strong case with recorded reasons before invoking Section 130 at the threshold. The court stressed the importance of forming opinions in good faith, disclosing materials for belief, and ensuring actions are not mere pretense. The petitioner was directed to justify why the show cause notice should be discharged.In conclusion, the writ application was disposed of with the rule made absolute to the extent mentioned, emphasizing the need for authorities to carefully assess contraventions and intent before invoking confiscation under Section 130. The judgment provided detailed insights into the legal requirements and considerations for invoking such provisions, ensuring transparency, and preventing arbitrary actions.