Confiscation Order Challenged: Tax Officer's Action Overturned with Conditional Vehicle Release Under CGST Section 130

The HC examined a case involving jurisdictional challenges to a Sales Tax Officer's confiscation order under Section 130 of the CGST Act. The court ordered the release of a confiscated truck, mandating the petitioner deposit Rs.1,00,000 and provide a bond of Rs.25,86,456. The decision balanced procedural compliance with the petitioner's right to recover the vehicle, subject to specific financial conditions.

---

---

Issues involved:
The issues involved in the judgment include the jurisdiction of the Sales Tax Officer, the confiscation order under Section 130 of the Central Goods and Services Tax Act, and the subsequent auction of confiscated goods.

Jurisdiction of Sales Tax Officer:
The petitioner sought relief to quash the confiscation order passed by the Sales Tax Officer in Form GST MOV-11 under Section 130 of the CGST Act. It was argued that the respondent had no jurisdiction to invoke confiscation proceedings under Section 130 despite the removal of the non-obstante clause. The petitioner contended that action under Section 129 of the CGST Act should have been initiated if the goods were in transit.

Confiscation Order and Auction of Goods:
The petitioner, owner of a truck, had the vehicle sub-let for transportation of goods. The truck was intercepted, and various orders were passed by the respondent, including physical verification of the conveyance, detention order under Section 129(1) of the CGST Act, and a show cause notice in form GST MOV-10 for confiscation of goods and vehicle. The petitioner mentioned that the confiscated goods were auctioned by the authority, and the amount was recovered. The petitioner requested the release of the conveyance, offering to deposit a specific amount and furnish a bond towards the remaining fine in lieu of the conveyance.

Decision and Conditions for Release:
Considering the facts and submissions, the Court ordered the release of the truck upon the petitioner complying with certain conditions. The petitioner was directed to deposit Rs.1,00,000 with the respondent authority and furnish a bond of Rs.25,86,456 towards the demand of the conveyance. Once these requirements were met, the respondent was instructed to release the conveyance immediately. The matter was scheduled to be revisited on 19.4.2023.

---