TaxTMI 
TaxTMI 
2023 (3) TMI 874
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....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 of respondent No.2 seeking to seize the goods a....
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....cent 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, pass an order within a period of seven days from the date of service of such notice, for payment pe....
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....under 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 without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance, then, all such goods or conveyances shall be liable to co....
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....e 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), (b) and (c) of the section. On the other hand, as could be prima facie gathered, the confiscation under section 130 would lead to the imposition of penalty proceedings under section 130 are adjudicatory in nature. 4. Learned adv....
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....v 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 was issued. Therefore, we are of the opinion that the High Court has materially erred in entertaining the writ petition against the show cause notice and quashing and setting aside the same. However, at the same time, the order passed by the High ....