TaxTMI 
TaxTMI 
2026 (4) TMI 1727
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....Act, 2017/HGST Act, 2017, dated 28.01.2026 (Annexure P-9). 2(i) The case of the petitioner is that the petitioner is running a firm under the name and style of M/s Sulodhia Steels in Mandi Gobindgarh, Punjab and is engaged in the business of trading in iron scrap. (ii) Vehicle of the petitioner was intercepted on 12.01.2026, when it was transporting goods i.e. M.S Boring Scrap from Chennai to Mandi Gobindgarh. The vehicle had the following documents:- a) Invoice No. 013 dated 11.12.2025 issued by M/s J.K. Steel, Sadayan, Kuppam, Village Road, Manali, Chennai-600103 for Rs.9,96,150/-, wherein, IGST and TCS amounting to Rs. 1,79,307/- and Rs. 11,755/- has been charged separately. The consignee is Sulodhia Steels Mandi Gobindgar....
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....oresaid show cause notice, the petitioner duly paid the penalty under protest to get released the vehicle and same was informed to respondent No. 3. (ix) After receipt of the penalty, under protest, respondent No. 3 issued release order of the vehicle on 23.01.2026. (x) After release of the vehicle, the petitioner intimating respondent No. 3 through email regarding payment of penalty under protest and reply to the show cause notice. (xi) Reply vide e-mail to the show cause notice was not considered and no order was passed after receipt of the reply. However, respondent No. 3 passed penalty order dated 28.01.2026 confirming the demand of Rs. 3,58,614/-. 3. Learned counsel for the petitioner submitted that in spite of having of th....
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....ed and after inspection following the due process, order of confiscation of goods and conveyance was issued in form GST MOV-11 and served on the owner/person-incharge of conveyance. It is further stated therein that the owner/person-in-charge has come forward and made the payment of tax, penalty, fine in lieu of confiscation of goods and conveyance and it is further stated in "In view of the above, the goods and conveyance are hereby released on 23.01.2026 at 5:10 am/pm in good condition." 7. The release order dated 23.01.2026, merely records that the detained goods and vehicle were released on payment of the proposed tax, penalty, fine. It makes no mention of withdrawal of show cause notice or of a conclusion of proceedings ini....
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....y the constitutional mandate under Article 265 of the Constitution, no tax can be levied or collected except with the authority of law. There is not only a bar against levy but also against collection. Therefore, the action of the proper officer must always be justifiable and fall within the four corners of law, as it is well settled that there can be no acquiescence in tax. 17. xxx xxx xxx 18. The principles of natural justice mandate that when a taxpayer submits a response to a show cause notice, the adjudicating authority is required to consider such response and render a reasoned, speaking order. This is not a mere procedural formality, but a substantive safeguard ensuring fairness in quasi-judicial proceedings. The ri....