TMI Blog2020 (3) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... be open for the writ applicant to point out the recent pronouncement of this Court in the case of SYNERGY FERTICHEM PVT. LTD VERSUS STATE OF GUJARAT [ 2020 (2) TMI 1159 - GUJARAT HIGH COURT] . It is now for the applicant to make good his case that the show cause notice, issued in Form GST-MOV-10, deserves to be discharged - Writ application disposed off. - R/Special Civil Application No. 15724 of 2019 - - - Dated:- 4-3-2020 - Mr. Justice J.B. Pardiwala And Mr. Justice Bhargav D. Karia For the Petitioner : Ms Vaibhavi K Parikh For the Respondent(s) No. 1 : Mr. Parth H Bhatt For the Respondent(s) No. 2 : Notice Served By DS ORAL ORDER PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA 1. Rule, returnable forthwit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed to forthwith release the goods as well as the conveyance of the petitioner which has been detained under the order dated 31.08.2019, Annexure 'A' to the petition. 3. Direct service is permitted. 4. While issuing notice, this Court directed that the vehicle as well as the goods be released, upon payment of the tax, in terms of the impugned notice. 5. The writ applicant availed the benefit of the interimorder passed by this Court and got the vehicle, along with the goods released on payment of the tax amount. The proceedings, as on date, are at the stage of show cause notice, under Section130 of the Central Goods and Services Act, 2017. The proceedings shall go ahead in accordance with law. 6. It shall be open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... release of such goods and conveyance on payment of the applicable tax and penalty or upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) to Clause (1) of Section 129. Section 129(2) also provides that the provisions of subsection (6) of Section 67 shall mutatis mutandis apply for detention and seizure of goods and conveyances. We quote Section 67(6) as under; 67(6) The goods so 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... magnitude which by itself would be sufficient to take the view that the contravention was with the necessary intent to evade payment of tax. 102. In such circumstances, referred to above, we propose to take the view that in all cases, without any application of mind and without any justifiable grounds or reasons to believe, the authorities may not be justified to straightway issue a notice of confiscation under Section 130 of the Act. For the purpose of issuing a notice of confiscation under Section 130 of the Act at the threshold, i.e,. at the stage of Section 129 of the Act itself, the case has to be of such a nature that on the face of the entire transaction, the authority concerned is convinced that the contravention was with a def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 cases where it is found that the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or proceed for the purpose of confiscation at the very threshold. But, at the same time, there must be material based on which alone the authority could form its opinion in good faith that it has become necessary to call upon the owner of the goods as well as the owner of the conveyance to showcause as to why the goods and the conveyance should not be confiscated under Section 130 of the Act. The notice for the purpose of confiscation must disclose the materials, upon which, the belief is formed. It could be argued that it is not necessary for the authority under the Act to state reasons for its belief. For the time being, we proceed on the basis of such argument. But, if it is challenged that the notice is bereft of the necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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