Seizure notice issued to transporter for non-payment of tax on goods, was valid, even if he was not supplier of goods

High Court of Allahabad, Ashok Kumar Bhatia v. State of U.P. – [2019] 104 taxmann.com 453 (Allahabad)

  The Competent Authority issued a show cause notice on the petitioner confiscating his vehicle. The petitioner filed a writ petition in the High Court of Allahabad to direct the Competent Authority to drop the proceedings initiated against him and grant a relief so that the Competent Authority would not confiscate his vehicle and release the same.

  The petitioner had argued that he was neither a ‘supplier’, nor a taxable registered person. He was only the owner of the vehicle and not doing any business in respect the goods being transported by him. He was carrying all the documents including E-way Bill at the time of transportation of goods.

  The High Court of Allahabad observed that for seizure and confiscation, it was immaterial that the person proceeded against was not a registered person or a supplier or a taxable person or was not doing any business as per the CGST Act, 2017. It was enough that he was a transporter of goods and the goods transported had been seized in transit. If the charge was made out against the transporter, the revenue could proceed to seize goods and vehicle.

  According to the provisions of penalty imposed for certain offences under the CGST Act, 2017 he would fall within the definition of ‘any person’ who concerned himself in transporting or removing goods and would be liable for of penalty to the extent of Rs. 25,000, if found guilty of the offence. However, petitioner had a right to file a reply against a show cause notice issued to him

  The High Court of Allahabad held that a show cause notice issued to the transporter was valid, even though he was not supplier of goods.