TMI Blog2019 (5) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... , whether tax and penalty can be levied besides confiscation of the goods and the vehicle etc should be examined, in the first instance, by the first respondent on the petitioner submitting his reply to the confiscation show-cause notice, and the order passed by the first respondent can, thereafter, be subjected to challenge in appropriate legal proceedings. The petitioner is permitted to submit their reply to the show cause notice within one week from today; and to direct the first respondent to pass orders thereupon at the earliest and, in any event, not later than one week from the date of receipt of the petitioner s reply to the show cause notice - petition disposed off. - WRIT PETITION NO. 31563 OF 2018 - - - Dated:- 6-9-2018 - SRI RAMESH RANGANATHAN AND SRI SMT KONGARA VIJAYA LAKSHMI, JJ. For The Petitioner : MR G NARENDRA CHETTY For The Respondent : GP FOR COMMERCIAL TAX AP ORDER: {Per the Hon ble Sri Justice Ramesh Ranganathan} The relief sought for in this Writ Petition is for a mandamus to declare the action of the first respondent, in intercepting vehicle bearing No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conveyance used for movement of goods, were detained under Section 129(1) of the CGST Act read with Section 68(3) of the State/Union Territory Goods and Services Tax Act, or under Section 20 of the Integrated Goods and Services Tax Act read with Section 68(3) of the CGST Act, by issuing an order of detention in FORM GST MOV 06; and the same was served on the person in-charge of the conveyance on 27.08.2018. On the ground that the goods were transported without valid documents, the first respondent presumed that the goods were being transported for the purpose of evading taxes and, in view thereof, he proposed to confiscate the said goods under Section 130 of the CGST Act read with the relevant provisions of the State Goods and Services Tax Act. In addition, the petitioner was informed that they were liable to pay tax, penalty and other charges payable in respect of such goods and the conveyance. It is this show cause notice which is under challenge in this Writ Petition as suffering from inherent lack of jurisdiction. Sri G.Narendra Chetty, learned counsel for the petitioner, would draw our attention to the Circular issued by the Chief Commissioner of State Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taining or seizing the goods or conveyance, to issue a notice specifying the tax and penalty payable and, thereafter, to pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c) of Section 129(1). Section 129(4) of the CGST Act stipulates that no tax, interest or penalty shall be determined, under sub-section (3), without giving the person concerned an opportunity of being heard. Section 129(5) provides that, on payment of the amount referred to in sub-section (1), all proceedings, in respect of the notice specified in sub-section (3), shall be deemed to be concluded. Section 129(6) of the CGST Act stipulates that, where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within seven days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of Section 130 of the CGST Act. Section 130 of the CGST Act relates to confiscation of goods or conveyances and levy of penalty. Section 130(1) of the CGST Act reads thus: ( 1) Notwithstanding anything contained in this Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30 of the CGST Act read with Section 122 of the CGST Act, and the fine in lieu of confiscation leviable under sub-Section (2) of Section 130 of the CGST Act shall be specified. Where the conveyance is used for the carriage of goods or passengers for hire, the owner of the conveyance shall also be issued a notice under the third proviso to sub-section (2) of Section 130 of the CTGST Act, proposing to impose a fine equal to the tax payable on the goods being transported in lieu of confiscation of the conveyance. Sri Shaik Jeelani Basha, Learned Special Standing Counsel, would submit that, in terms of para-2(l) of the said Circular, if the officer is satisfied that the movement of the goods is effected to evade payment of tax, it is open to him to directly invoke Section 130(1) of the CGST Act. While Sri G. Narendra Chetty, learned counsel for the petitioner, would contend that the petitioner s case would fall within the ambit of Section 129 of the CGST Act, Sri Shaik Jeelani Basha, learned Special Standing Counsel for Commercial Taxes, would submit that, since the petitioner s endeavour was to evade payment of tax, it is open to the authorities to directly proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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