TMI Blog2021 (2) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the show cause notice, issued in Form GSTMOV10, deserves to be discharged - application disposed off. - R/Special Civil Application No. 15622 of 2019 - - - Dated:- 29-1-2021 - Honourable Mr. Justice J.B. Pardiwala And Honourable Mr. Justice Ilesh J. Vora For the Petitioner(s) : Ms Vaibhavi K Parikh For the Respondent(s) : Mr. Parth H Bhatt ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. Rule, returnable forthwith. Mr. Parth Bhatt, the learned Standing Counsel waives service of notice of Rule for and on behalf of respondent no. 1 and Mr. Chintan Dave, the learned Assistant Government Pleader waives service of notice of rule for and on behalf of the respondent no.2. 2. By this Writ Application u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice 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 interim order 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 for the writ applicant to point out the recent pronouncement of this Court in the case of Synergy Fertichem Pvt.Ltd Vs. State of Gujarat [Special Civil Application No.4730 of 2019]. It shall be o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 definite intent to evade payment of tax. We may give one simple example. The driver of the vehicle is in a position to produce all the relevant documents to the satisfaction of the authority concerned as reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 intention was to evade payment of tax. Confiscation of goods or vehicle is almost penal in character. In other words, it is an aggravated form of action, and the object of such aggravated form of action is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sary to call upon the owner of the goods as well as the owner of the conveyance to show cause 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 details or the satisfaction of the authority is imaginary or based on mere suspicion, then the authority must disclose the materials, upon which, his belief was formed as it has been held by the Supreme Court in S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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