Confiscation under CGST Act: Invoking Section 130 CGST Act

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....e analyzes a recent judgment of the High Court concerning the interplay between Section 129 and Section 130 of the Central Goods and Services Tax (CGST) Act, 2017. The core legal question presented was whether proceedings u/s 130 (confiscation of goods and levy of penalty) can be initiated without prior proceedings u/s 129 (detention and seizure of goods in transit). ARGUMENTS PRESENTED The peti....

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....30, observing that Section 129 is limited to goods in transit, while Section 130 covers various situations involving intent to evade tax, including but not limited to goods in transit. The Court referred to the Gujarat High Court's judgment in SYNERGY FERTICHEM PVT. LTD Versus STATE OF GUJARAT - 2019 (12) TMI 1213 - GUJARAT HIGH COURT, which held that authorities must examine the nature of th....

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....iscation order did not bear a Document Identification Number (DIN), as mandated by a CBIC circular, further vitiating the proceedings. Consequently, the Court set aside the confiscation orders and remanded the matters to the authority for proper adjudication following principles of natural justice. DOCTRINAL ANALYSIS The judgment clarifies the interplay between Sections 129 and 130 of the CGST ....