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Confiscation under section 130 of the Act without initiating any proceedings under section 129 of the Act confiscation under section 130 of the Act without initiating any proceedings under section 129 of the Act

Section 129 and 130 of the CGST Act, 2017— Goods In Transit -– The petitioner invited the attention of the court to the provisions of sections 129 and 130 of the Act. The petitioner submitted that firstly under section 129 , the officer is required to issue a notice under subsection (3) and thereafter, after affording an opportunity of hearing to the person concerned, pass an order thereunder. It was submitted that it is only if there is no compliance of the order passed under section 129, that the provisions of section 130 can be resorted to. The petitioner submitted that impugned show cause notice dated 02.03.2019 sought to impose penalty, redemption fine and confiscation under section 130 of the Act without initiating any proceedings under section 129 of the Act, which is not permissible in law. The petitioner already deposited tax and penalty u/s 129.
Held that:- The Hon’ble High Court issued notice returnable on 10.04.2019. Further directed that the respondents shall also show cause as to why costs should not be imposed upon the respondents for noncompliance of the relevant statutory provisions and directed to the respondents to release the vehicle together with the goods.—Panchratan Sales Corporation Vs State of Gujarat [2019] 10 TAXLOK.COM 146 (Gujarat)