TMI Blog2020 (2) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... , the writ applicant has prayed for the following reliefs: 5[A] A writ of mandamus, or any other appropriate writ, order and/or direction in the nature of mandamus to quash and setting aside the notice issued by the respondent no.3 for confiscation of goods an conveyances and levy of penalty under Section 130 of the GST Act; [B] A writ of mandamus, or any other appropriate writ, order and/or direction in the nature of mandamus directing the learned Respondent authorities to forthwith release goods with vehicle No.GJ-01-AT-1961 by quashing and setting aside the detention notice issued for such purpose; [C] During the admission, hearing and final disposal of the present petition, be pleased to grant an interim relief directing the respondent no.3 to release the goods with truck No.GJ-01-AT-1961 detained/ seized in purported exercise of powers u/s 129 and 130 of the GST Act; [D] Pass any other order(s) as this Hon ble Court may deem fir and more appropriate in order to grant interim relief to the Petitioner; [E] Any other and further relief deemed just and proper be granted in the interest of justice; [F] To provide for the cost of this petition. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the vehicle as well as the machine came to be seized. As on date, the vehicle as well as the machine is in custody of the authorities. It appears that in the case on hand, proceedings came to be initiated straightway under Section 130 of the GST Act. The confiscation proceedings are pending as on date.] However, it is not in dispute that the writ applicant has deposited amount of ₹ 3,32,144/towards tax and penalty. 4. This Court is examining the larger issue as regards Section 129 and Section 130 of the GST Act. The batch of writ applications is to come up for final hearing on 7th August, 2019. Having regard to the fact that the goods involved in the case on hand is a sonography machine and the same is lying with the authorities past more than one month, we are of the view that the same should be released subject to the final outcome of this petition. 5. In such circumstances referred to above, we direct the respondent authorities to release the sonography machine at the earliest as the writ applicant has deposited the amount of ₹ 3,32,144/towards tax as well as penalty. Direct service is permitted. 3. While issuing notice, this Court directed that the vehi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o seized under subsection(2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be. 100. Section 129 further provides that the proper officer, detaining or seizing the goods or conveyances, is obliged to issue a notice, specifying the tax and penalty payable and, thereafter, pass an order for payment of such tax and penalty. Clause (4) provides that no tax, interest or penalty shall be determined under subsection (3) without giving the person concerned an opportunity of being heard. Clause (5) provides that on payment of the amount, referred to in subsection (1) of the proceedings in respect of the notice, specified in subsection (3) are deemed to be concluded, and in the last, clause (6) provides that if the tax and penalty is not paid within 14 days of detention or seizure, then further proceedings would be initiated in accordance with the provisions of Section 130. 101. We are of the view that at the time of detention and seizure of goods or conveyance, the first thing the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax . We have also come across notices of confiscation, wherein it has been stated that the the driver of the conveyance is presumed to have contravened the provisions of the Act or the Rules with an intent to evade payment of tax. This, in our opinion, is not justified. The resultant effect of such issue of confiscation notice at the very threshold, without any application of mind or without there being any foundation for the same, renders Section 129 of the Act practically otiose. We take cognizance of the fact that once the notice under Section 130 of the Act is issued, then the vehicle is not released even if the owner of the goods is ready and willing to pay the tax and the penalty that may be determined under Section 129 of the Act. Such approach leads to unnecessary detention of the goods and the conveyance for an indefinite period of time. Therefore, what we are trying to convey is that all cases of contravention of the provisions of the Act or the Rules, by itself, may not attract the consequences of such goods or the conveyance confiscated under Section 130 of the Act. Section 130 of the Act is altogether an independent provision which provides for confiscation in cas ..... 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