AI Drafter 
TaxTMI 
TaxTMI 
2019 (5) TMI 957
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.... 10.30 pm at Madanapalle while it was in transit carrying "fresh tamarind" from the petitioner to its purchasing dealer in Tamilnadu, though it was covered by an invoice and both the parties were registered GST dealers, in detaining the same, and in issuing a confiscation notice, as arbitrary and illegal. While the goods were in movement, in vehicle bearing No.AP- 03-TE-9508, the Deputy Assistant Commissioner (ST), Madanapalle intercepted the vehicle and caused inspection, of the goods in movement, under Section 68(3) of the Central Goods and Services Tax Act, 2017 ("the CGST Act" for brevity). In the impugned confiscation notice dated 24.08.2018, it is recorded that the driver of the vehicle had produced unnumbered invoices dated 24.08.....
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....r in the invoices, was required to be proceeded against. Both the goods, and the conveyance used for movement of goods, were detained under Section 129(1) of the CGST Act read with Section 68(3) of the State/Union Territory Goods and Services Tax Act, or under Section 20 of the Integrated Goods and Services Tax Act read with Section 68(3) of the CGST Act, by issuing an order of detention in FORM GST MOV 06; and the same was served on the person in-charge of the conveyance on 27.08.2018. On the ground that the goods were transported without valid documents, the first respondent presumed that the goods were being transported for the purpose of evading taxes and, in view thereof, he proposed to confiscate the said goods under Section 130 of....
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....e it does appear that, while the petitioner claimed that the goods were fresh tamarind, the first respondent was of the view that it was dried tamarind. It does also appear that the description of the goods mentioned in the invoice, did not tally with the goods under transport; and, consequently, the instructions in Circular dated 12.07.2018, that vehicles not be detained under certain circumstances, has no application to the case on hand. Section 129(1) of the CGST Act contains a non-obstante clause and stipulates that, notwithstanding anything contained in the Act, where any person transports any goods, or stores any goods while they are in transit in contravention of the provisions of the Act or the Rules made thereunder, all such goo....
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.... be initiated in accordance with the provisions of Section 130 of the CGST Act. Section 130 of the CGST Act relates to confiscation of goods or conveyances and levy of penalty. Section 130(1) of the CGST Act reads thus: (1) Notwithstanding anything contained in this Act, if any person - (i) supplies or receives any goods in contravention of any of the provisions of the Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any of the provisions of this Act or the rules made th....
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....nt of goods is being effected to evade payment of tax, he may directly invoke Section 130 of the CGST Act by issuing a notice proposing to confiscate the goods and conveyance in FORM GST MOV-10. In the said notice, the quantum of tax and penalty leviable under Section 130 of the CGST Act read with Section 122 of the CGST Act, and the fine in lieu of confiscation leviable under sub-Section (2) of Section 130 of the CGST Act shall be specified. Where the conveyance is used for the carriage of goods or passengers for hire, the owner of the conveyance shall also be issued a notice under the third proviso to sub-section (2) of Section 130 of the CTGST Act, proposing to impose a fine equal to the tax payable on the goods being transported in lieu....