TMI Blog2019 (9) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... onveyance were required to be confiscated. Despite the fact that the petitioner and Anjani Synthetics Limited had submitted explanations in respect of the discrepancies noticed by the third respondent, there is no reference to the same in the impugned order. Thus, the third respondent without applying his mind to the facts of the case appears to have mechanically passed the impugned order without assigning any reasons worth the name for confiscating the goods and conveyance. The impugned order has been passed without any application of mind and without considering the explanation submitted by the petitioner and Anjani Synthetics Limited and in undue haste. Moreover, despite the fact that out of 61 consignments, the third respondent has noticed deficiencies only in respect of three consignments, the conveyance of the petitioner is also sought to be confiscated, that too without assigning any reasons as to how the petitioner has sought to evade payment of tax - it was incumbent upon the third respondent to give reasons in support of his conclusion that the goods in question and the conveyance are required to be confiscated. However, the impugned order is totally bereft of any reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Services Tax Act, 2017 (hereinafter referred to as the CGST Act ) as well as the Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as the GGST Act ). [Both the above Acts together are hereinafter referred to as the GST Acts ]. It appears that the petitioner provided justification for not generating the above mentioned e-way bills; however, there was no response from the respondents. It further appears that the petitioner agreed to pay the tax and penalty as calculated on the basis of transaction value in the invoice as envisaged under section 129 of the GST Acts. However, the second respondent passed an order dated 28.5.2019 increasing the value of goods by 20% and confiscating the goods under section 130 of the GST Acts. Being aggrieved by the continued detention/seizure of its goods, the petitioner has filed the present writ petition seeking the reliefs noted hereinabove. 5. Mr. Manasvi Thapar, learned advocate for the petitioner, submitted that the continued detention/seizure of the goods and vehicle of the petitioner, despite the petitioner having agreed to pay tax and penalty as stipulated under section 129 of the GST Acts, is wholly witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfiscated on 16.5.2019 directly in exercise of powers under section 130 of the Goods and Services Tax Act, 2017. The ground for confiscation of the said vehicle was that qua three e-way bills, Part-B was not found from the vehicle, meaning thereby, out of 61 consolidated e-way bills, Part-B was only for 58 consignments and Part-B of e-way bills of three consignments was not traceable. It is further submitted that the authorities could find invoices qua all 61 consignments but out of those 61 invoices, 14 invoices were quite doubtful as they did not bear the signatures of the authorized persons issuing the said invoices. [The details of the 14 invoices are set out in the affidavit-in-reply.] It was submitted that the authorities have, therefore, presumed that the said invoices are fake and are drawn with an intention to evade tax. 6.1 It is further submitted that the earlier representation dated 20.5.2019 was given by the petitioner who is the transporter and that neither the purchaser nor the suppliers have given any explanation in respect of the 14 invoices which do not bear any signature and that the explanations dated 20.5.2019 and 28.5.2019 are mainly qua non-p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s because not bearing signatures of suppliers. ( iii) With reference to bill of M/s. Anjani Synthetics Ltd. Dated;30.04.2019, submitted that the goods was sent to transporter with bill of supply and e-way bill part A on 30.04.2019, but confirmation was not received from recipient, so the goods was stored in godown of transporter till 16.05.2019 after receiving the confirmation goods was dispatched. But he has not provided any proof for supporting his submission. Also transporter has not included the same transaction in his consolidated e-way bill. So, it is presumed that he is also involved in evasion of the tax for the above bill. ( iv) The documents tendered for the transactions mentioned in (i) are not valid according to sec.68 of GGST Act, 2017 as there is no signature of authorized person. ( v) As per the above detail it is clear that taxable persons are evading tax by not generating e-way bill part-B. ( vi) No supplier came forward for the clarification for not generating e-way bill part-B and about bill of supply without authorized signature. ( vii) Value of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GJ 27 X 3752 2 Vehicle Description 3 Engine No. 4 Chasis No. It appears that the petitioner has also given an explanation dated 28.5.2019. 11. A perusal of the impugned order dated 16.5.2019/28.5.2019 reveals that the notice in Form GST MOV- 10 dated 16.5.2019 was issued on 21.5.2019. By virtue of the impugned order, goods in respect of only three parties and the conveyance have been confiscated. The goods confiscated are in respect of the three parties referred to hereinabove. 12. In the impugned order in paragraph 5, it has been recorded thus: 5. The person in charge has not filed any objections/ the objections filed were found to be not acceptable for the reasons stated below: a) Thereafter, in paragraph 6, it has been recorded thus:- 6. In view of the above, the following goods and convey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d causes immense prejudice to the parties. 14. It may further be noted that while the impugned order is bereft of any reasons, in the affidavit-in-reply filed on behalf of the third respondent, it has been stated that Part-B of the eway bill for three consignments was not traceable. Another ground put forth is that, in all, there were 61 consignments, and that out of 61 invoices, 14 invoices were doubtful as they did not bear the signature of the authorised person issuing the said invoices. However, a perusal of the details of the 14 invoices as reflected in the impugned order shows that none of them relate to the three parties whose goods are sought to be confiscated. It has been stated by the third respondent that none of the purchasers/suppliers have given any explanation qua the 14 invoices which clearly indicates that even the affidavit-in-reply has been filed without proper application of mind, inasmuch as, the goods relating to the 14 invoices have not been confiscated. In the affidavit-in-reply, it has also been stated that mainly due to the fact that 14 invoices are not properly signed, the authorities have exercised powers under section 130 of the CGST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by judicial, quasi-judicial and even by administrative bodies. ( g) Reasons facilitate the process of judicial review by superior courts. ( h) The ongoing judicial trend in all countries committed to rule of law and constitutional governance is in favour of reasoned decisions based on relevant facts. This is virtually the lifeblood of judicial decision-making justifying the principle that reason is the soul of justice. ( i) Judicial or even quasi-judicial opinions these days can be as different as the judges and authorities who deliver them. All these decisions serve one common purpose which is to demonstrate by reason that the relevant factors have been objectively considered. This is important for sustaining the litigants faith in the justice delivery system. ( j) Insistence on reason is a requirement for both judicial accountability and transparency. ( k) If a judge or a quasi-judicial authority is not candid enough about his/her decision-making process then it is impossible to know whether the person deciding is faithful to the doctrin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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