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2023 (3) TMI 874
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.... addressed by the petitioner to two orders. The first is order dated 23.11.2022 (GST MOU 06) which is an order passed under section 129(2) of the Central Goods and Services Tax Act, 2017 and the the Gujarat Goods and Services Tax Act, 2017. The other challenge is addressed against order dated 25.11.2022 (MOV 10) passed under section 130 of the Act. By order dated 25.11.2022, the goods of the petitioner came to be confiscated. 3. The facts to be noticed are that the petitioner pursuant to purchase order raised by it, transported the goods in the nature of metal scrap from Pune, Maharashtra to Vijapur, Gujarat through conveyance truck bearing No. MH-16-AY-9809. When the goods were in transit, the truck was intercepted by the mobile squad o....
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....r and in case of exempted goods, on payment of any amount equal to five percent of the value goods or twenty five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such penalty; (c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) xxx (3) The proper officer detaining or seizing goods or conveyances shall issue a notice within seven days of such detention or seizure, specifying penalty payable, and thereafter, ....
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.... (1) Where any person- (i) supplies or receives any goods in contravention of any of the provisions of this 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 thereunder with intent to evade payment of tax; or (v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used witho....
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....ion of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession. (7) The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Government." 3.4 As could be seen from the reading of section 129 quoted above, when the goods are seized while in transit, upon conditions contemplated in the section itself, they could be released. Those conditions enumerated are in clauses (a), (....
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....stricter condition of securing amount of tax and penalty 5.1 The proceedings would continue under section 130 of the Act. In this regard, attention of the court was invited to the order of the Apex Court in State of Punjab vs. M/s. Shiv Enterprises and Ors. being Civil Appeal No. 359 of 2023 arising out of SLP (C) No. 19295 of 2022) wherein in the similar circumstances, the Apex Court was of the view that the proposed notice under section 130 was yet to be adjudicated. 5.2 The supreme court observed as under, "...it was premature for the High Court to opine anything on whether there was any evasion of the tax or not. The same was to be considered in an appropriate proceedings for which the notice under Section 130 of the Act ....
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....a). 6. In that view, it is directed that the respondents shall release the goods and conveyance of the petitioner, confiscated and detained pursuant to impugned order dated 25.11.2022 (GST MOV 10) subject to the following conditions, (i) The petitioner shall deposit an amount of interest of Rs. 35,84,117/- if so far not paid by the petitioner. (ii) The petitioner shall deposit the amount towards penalty of Rs. 5,46,730/-. (iii) The petitioner furnishes bond to the tune of Rs. 35,84,117/-. 6.1 As far as notice under section 130 of the Act (MOV 10) is concerned, the same would culminate into appropriate orders after adjudication. Therefore, going into the merits of the notice would be premature at this stage. ....