Iron Scrap Goods Dispute: GST Notice Quashed, Vehicle and Goods Released with Conditional 25% Cash Deposit

HC quashed the GST notice for confiscation of iron scrap goods, allowing the petitioner to respond to the show cause notice. The court granted release of the vehicle and goods subject to a 25% cash deposit and personal bond. Authorities were directed to verify transit facts and exercise discretionary powers in accordance with tax laws.

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Issues involved:
The issues involved in the judgment are the quashing of a notice for confiscation of goods under the Punjab Goods & Services Tax Act and Central Goods & Services Tax Act, release of the vehicle and goods, verification of facts and transit, and the authority's discretion to take action.

Judgment Summary:

Quashing of Notice for Confiscation of Goods:
The writ petition sought to quash a notice in Form GST MOV-02 dated 16.08.2023, where respondent authorities intercepted goods and conveyance carrying iron scrap goods. A notice for confiscation of the goods and imposition of tax, penalty, and other charges under relevant tax Acts was issued. The petitioner requested the quashing of the notice.

Release of Vehicle and Goods:
The petitioner also requested the release of the vehicle and goods, which was granted by a Co-ordinate Bench on 31.08.2023, subject to a deposit of 25% in cash and the remaining in the form of a personal bond with surety. The petitioner indicated readiness to pay the penalty and fine specified in the notice.

Verification of Facts and Transit:
The show cause notice referenced an invoice in favor of Durga Multimetals Pvt. Ltd., indicating a consignment by Rajan Trading Corporation to the petitioner. The genuineness of the facts and transit required further verification, with specific reference to Section 16(2)(c) of the Act and the need to examine books of account.

Authority's Discretion to Take Action:
The judgment highlighted the need for the competent authority to investigate the matter further, as per the Apex Court's ruling in a similar case. The Court disposed of the writ petition, allowing the petitioner to respond to the notice and granting authorities the discretion to take action in accordance with the law.

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