GST detention and confiscation powers under sections 129 and 130 operate separately, but confiscation notice was quashed on the facts.

Sections 129 and 130 of the GST regime operate in distinct fields: section 129 covers detention of goods and conveyance during transit, while section 130 concerns confiscation where the circumstances indicate an intention to evade tax. The Gujarat High Court reiterated that confiscation is not barred merely because proceedings began under section 129. On the facts, however, the impugned MOV-10 notice and the ensuing confiscation proceedings were treated as unsustainable in light of the earlier ruling, and were quashed in favour of the assessee.

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Issues: Whether, after detention of goods and conveyance during transit under section 129, the authorities could directly invoke section 130 to issue confiscation notice and proceed further.

Analysis: The Court followed its earlier decision that sections 129 and 130 operate in distinct fields. Section 129 governs detention and seizure of goods and conveyance during transit, while section 130 deals with confiscation. The Court reiterated that confiscation under section 130 may be resorted to where the circumstances disclose an intention to evade tax, and that the statutory scheme does not bar recourse to confiscation merely because proceedings commenced under section 129. On the facts, the impugned MOV-10 notice and subsequent confiscation proceedings were covered by the earlier ruling and could not survive.

Conclusion: The invocation of section 130 after initiation of proceedings under section 129 was held unsustainable on the facts of the case, and the notice and consequential proceedings were quashed in favour of the assessee.

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