TaxTMI 
TaxTMI 
2020 (3) TMI 352
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.... for the following reliefs: "7(a) To quash and set aside the Show-Cause Notice dated 28.05.2019 (Annexure-A) issued by the respondent no.3. (b) Pending the admission, hearing and final disposal of this petition, to stay the implementation and operation of the Show Cause Notice at Annexure-A to this petition. (c) direct the respondent no.3 to release the vehicle of the petitioner. (d) direct the respondent no.3 to release the goods worth Rs. 4,72,590/along with the vehicle. (e) any other and further relief deemed just and proper be granted in the interest of justice." 3. We take note of the order passed by this Court dated 12.06.2019, which reads thus: "1. Let Notice be issued to the r....
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.... the conveyance as well as the goods on the writ depositing an amount of Rs. 1,44,180/with the department. On deposit of the said requisite amount, the conveyance as well as the goods shall immediately be released. 4 Post the matter for further hearing on 19th June 2019 along with other allied petitions. Direct service is permitted." 4. While issuing notice, this Court directed the authorities to release the conveyance as well as the goods on the writ depositing an amount of Rs. 1,44,180/with the department. On deposit of the said requisite amount, the conveyance as well as the goods shall immediately be released. 5. The writ applicant availed the benefit of the interm-order passed by this Court and got the vehicle, along wit....
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.... of Section 129 of the Act pale into insignificance. The reason why we are saying so is that for the purpose of release of the goods and conveyance detained while in transit for the contravention of the provisions of the Act or the rules, the section provides for release of such goods and conveyance on payment of the applicable tax and penalty or upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) to Clause (1) of Section 129. Section 129(2) also provides that the provisions of sub-section (6) of Section 67 shall mutatis mutandis apply for detention and seizure of goods and conveyances. We quote Section 67(6) as under; "67(6) The goods so seized under subsection( 2) shall be released, on a pro....
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....or presumption of culpable mental state but such presumption is available to the department only in the cases of prosecution and not for the purpose of Section 130 of the Act. What we are trying to convey is that in a given case, the contravention may be quite trivial or may not be of such a magnitude which by itself would be sufficient to take the view that the contravention was with the necessary intent to evade payment of tax. 102. In such circumstances, referred to above, we propose to take the view that in all cases, without any application of mind and without any justifiable grounds or reasons to believe, the authorities may not be justified to straightway issue a notice of confiscation under Section 130 of the Act. For the p....
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....Act or the Rules with an intent to evade payment of tax. This, in our opinion, is not justified. The resultant effect of such issue of confiscation notice at the very threshold, without any application of mind or without there being any foundation for the same, renders Section 129 of the Act practically otiose. We take cognizance of the fact that once the notice under Section 130 of the Act is issued, then the vehicle is not released even if the owner of the goods is ready and willing to pay the tax and the penalty that may be determined under Section 129 of the Act. Such approach leads to unnecessary detention of the goods and the conveyance for an indefinite period of time. Therefore, what we are trying to convey is that all cases of cont....
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.... is one of straightway invoking Section 130 of the Act. Any opinion of the authority to be formed is not subject to objective test. The language of Section 130 of the Act leaves no room for the relevance of an official examination as to the sufficiency of the ground on which the authority may act or proceed for the purpose of confiscation at the very threshold. But, at the same time, there must be material based on which alone the authority could form its opinion in good faith that it has become necessary to call upon the owner of the goods as well as the owner of the conveyance to show-cause as to why the goods and the conveyance should not be confiscated under Section 130 of the Act. The notice for the purpose of confiscation must disclos....