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TMI Blog2020 (3) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... opriate writ, order or direction to direct respondent to release the goods and vehicle on payment of applicable tax and penalty in terms of clause (a) of Sub-section (1) of Section 129 of the GGST/ CGST Act after being provided an opportunity of hearing under Sub-section (4) of the Section 129 of g the GGST / CGST Act; b. To issue order(s), direction(s), writ(s) or any other relief(s), as this Hon'ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice; c. To issue Rule Nisi in terms of prayers (a) to (b) above; d. To Grant adinterim reliefs in terms of prayers above; e. To award costs of and incidental to this application be paid by the Respondents." 2. We take note of the order pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y impossible to envisage various types of contravention of the provisions of the Act or the Rules for the purpose of detention and seizure of the goods and conveyances in transit. The contravention could be trivial or it may be quite serious sufficient enough to justify the detention and seizure. This litigation is nothing but an outburst on the part of the dealers that practically in all cases of detention and seizure of goods and conveyance, the authorities would straightway invoke Section 130 of the Act and thereby would straightway issue notice calling upon the owner of the goods or the owner of the conveyance to showcause as to why the goods or the conveyance, as the case may be, should not be confiscated. Once such a notice under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se (5) provides that on payment of the amount, referred to in Sub-section (1) of the proceedings in respect of the notice, specified in Sub-section (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 authorities need to look into closely is the nature of the contravention of the provisions of the Act or the Rules. The second step in the process for the authorities to examine closely is whether such contravention of the provisions of the Act or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned. The authenticity of the delivery challan is also not doubted. In such a situation, it would be too much for the authorities to straightway jump to the conclusion that the case is one of confiscation, i.e. the case is of intent to evade payment of tax. 103. We take notice of the fact that practically in all cases, after the detention and seizure of the goods and the conveyance, straightway notice is issued under Section 130, and in the said notice, one would find a parrot like chantation "as the goods were being transported without any valid documents, it is presumed that the goods were being transported for the purposes of evading the tax". We have also come across notices of confiscation, wherein it has been stated that the driver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould not be understood to have taken the view that, in any circumstances, the authorities concerned cannot invoke Section 130 of the Act at the threshold, i.e. at the stage of detention and seizure. What we are trying to convey is that for the purpose of invoking Section 130 of the Act at the very threshold, the authorities need to make out a very strong case. Merely on suspicion, the authorities may not be justified in invoking Section 130 of the Act straightway. If the authorities are of the view that the case is one of invoking Section 130 of the Act at the very threshold, then they need to record their reasons for such belief in writing, and such reasons recorded in writing should, thereafter, be looked into by the superior authority s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easonable person can base his reasonable belief upon such materials although the sufficiency of the reasons for the belief cannot be investigated by the Court. The formation of the opinion by the authority that the goods and the conveyance are liable to be confiscated should reflect intense application of mind. We are saying so because it is not any or every contravention of the provisions of the Act or the Rules which may be sufficient to arrive at the conclusion that the case is one of an intention to evade payment of tax. In short, the action must be held in good faith and should not be a mere pretence." 6. It is now for the applicant to make good his case that the show cause notice, issued in GSTMOV-10, deserves to be discharged. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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