TMI Blog2020 (11) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... er(s) No. 1 MS ML SHAH, GOVERNMENT PLEADER with MR CHINTAN DAVE, ASSISTANT GOVERNMENT PLEADER for RESPONDENTS ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. By this writ application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs: (a) to allow the present writ petition; (b) to quash and set aside the Order of Detention under Section 129(1) of the CGST Act dated 02/10/2020 (Annexure- A ) issued by the Respondent No.4; (c) to quash and set aside the Show Cause Notice under Section 130 of the CGST Act dated 02/10/2020 (Annexure- A1 ) issued by the Respondent No. 4; (d) pending the hearing and final disposal of this petition, to stay the implementation and operation of the Order of Detention under Section 129(1) of the CGST Act dated 02/10/2020 at Annexure A to this petition; (e) pending the hearing and final disposal of this petition, to stay the implementation and operation of the Show Cause Notice under Section 130 of the CGST Act dated 02/10/2020 at Annexure Al to this petition; (f) pending the admission, hearing and final disposal of this petition, direct the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncies were noticed. On 07.08.2020, STO-2, mobile squad Bhavnagar intercepted vehicle no GJ-12-AT-9462 of M/s IMRAN IMPEX and applied section 130 of GST act 2017, party has accepted the demand raised in mov-10 and not submitted any clarification and pald challan on date 07.08.2020 in which, STO-2, mobile squad Bhavnagar clearly stated following discrepancy In MOV-10 and MOV-11. PURCHASE OF IMRAN IMPEX IS FROM 24BFPPG8457Q1Z) / VARUNI_ INTERNATIONAL AND 24AKWPM436751ZH / RATNARAJ STEEL IS PRIMA FACIE DOUBTFUL, THESE BOTH FIRMS HAVE PURCHASE FROM BOGUS FIRMS AND ARE PASSING ON ITC TO IMRAN IMPEX 2. Driver has produced a document (Tax invoice and E-way bill), however transactions (mainly it s purchase from VARUNI INTERNATIONAL GSTN: 24BFPPG8457Q12) and RATNARA) STEEL: 24AKWPM4367)12H) of seller M/s Imran Impex GSTN: 24AFUPA2361K1ZE are suspicious and its require further verification hence purchase ledger along with tax invoices with supporting documents like E-way Bills, LR, Weight receipt Etc needs to be submitted this office for verification purpose. 3. After analyzing the transactions, returns filled by the respective firms and data available on E-way bill portal fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation. 6. Mr. Tushar Hemani, the learned Senior Counsel assisted by Ms. Vaibhavi K. Parikh, the learned counsel for the writ applicant vehemently submitted that there is no contravention worth the name of any provisions of the GST Act or the Rules made thereunder. It is argued that the driver of the vehicle had all the necessary documents which were required to be in his possession as per Rule 138A of the GST Rules. It is argued that the respondent No.4 has wrongly invoked the provisions under Section 129 of the GST Act by passing the impugned order of detention as Section 129 of the GST Act talks about the detention, seizure and release of goods and the conveyances in transit. It is further pointed out by Mr. Hemani that the show cause notice has been issued on the assumption that the past transactions of the writ applicant are doubtful and therefore, a detailed inquiry is required in the matter. It is also argued that the supplier from whom the writ applicant purchased the goods, namely, M/s. Shiv Shakti Trading Company, has issued the purchase bill and the same was verified by the respondent No.2 on 29th September, 2020. 7. It is also argued that the conditions enumerated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice for confiscation issued by the respondent authorities in FORM GST MOV- 10 is annexed hereto and marked as Annexure -A. 7. It is the case of the petitioner in the present writ petition before this Hon ble Court that there is no violence of any of the provisions of GST Act and the documents as required under Rule 138A of the CGST Rules were available with the driver of the conveyance when the goods were detained by the authorities. In the facts of the present case the said submission of the petitioner is admittedly incorrect and contrary to records. In this regard the attention of this Hon ble Court is drawn to the nature of transaction. Accordingly, to the petitioner himself one M/s. Hussain Sheth Enterprise, Bhavnagar had placed an order with the petitioner for HMS Scrap. The goods were to be picked up from Shiv Shakti Trading Company, Gandhidham and same were to be delivered to M/s. Hussain Sheth Enterprise, Bhavnagar. However, the petitioner neither before the authorities nor before this Hon ble Court has generated or produced the e-way bill of Shiv Shakti Trading Company. The only e-way bill that is produced is for the socalled movement of goods from the office of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent authorities and therefore the provisions as contained Section 130(1) (iv) that refers to contravention with an intent to evade payment of tax are attracted. Therefore, the respondent authorities have rightly issued the impugned show-cause notice and has called upon the petitioner to show the details of goods that are being transported in the transaction that is under consideration. Copies of the e-way bills that are generated by the petitioner and are admittedly in doubtful is nature are annexed hereto and marked as Annexure-C(COLLY). 9. In light of above it is crystal that in the months of August 2020 and September, 2020, the petitioner has entered into numerous bogus transactions. The petitioner has_ therefore violated the provisions of the GST Act and hence the respondent authorities were constrained to initiate proceedings under the GST Act. At present the petitioner is simply called upon to the submit the details of the transactions in question and if the same are found in order, the respondent authorities are under a statutory obligation to pass appropriate orders in accordance with law with regard to the release of goods. However, the petitioner is not having ..... X X X X Extracts X X X X X X X X Extracts X X X X
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