GST vehicle confiscation fails where defective notice and no effective hearing violate natural justice

Confiscation of a conveyance under GST requires a valid show cause notice and a meaningful opportunity of hearing because the action has serious civil consequences. The Form GST MOV-10 notice was defective, as it fixed an appearance date earlier than the date of the notice, making it misleading and depriving the noticee of an effective chance to respond. The record also did not show that a proper hearing was granted before the confiscation order. As the statutory safeguard and principles of natural justice were not complied with, the confiscation order and appellate order were liable to be quashed, leaving the department free to proceed afresh in accordance with law.

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Issues: Whether the confiscation of the vehicle and the appellate order could be sustained when the show cause notice was defective and no effective opportunity of hearing was granted under the confiscation provisions of the GST law.

Analysis: The confiscation of a conveyance under the GST framework carries serious civil consequences, and the statutory scheme requires compliance with the opportunity of hearing mandated by the confiscation provision. The notice issued in Form GST MOV-10 was found to be misleading and incorrect because it mentioned an appearance date earlier than the date of the notice itself. That defect deprived the noticee of a meaningful chance to understand the case and respond. The record also did not show that a proper hearing was afforded before the confiscation order was passed. In such circumstances, the procedural safeguard embedded in the statute and the broader principles of natural justice were not satisfied, and the defect caused prejudice to the petitioner.

Conclusion: The confiscation order and the appellate order could not be sustained and were liable to be quashed; the matter was left open to the respondents to initiate fresh proceedings in accordance with law.

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