Validity of Redemption fine and confiscation under section 130 without initiating any proceedings under section 129

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Validity of Redemption fine and confiscation under section 130 without initiating any proceedings under section 129

2019 TaxPub(GST) 0330 (Guj-HC)

Synergy Fertichem (P.) Ltd. v. State of Gujarat

IN THE HIGH COURT OF GUJARAT

HARSHA DEVANI & BHARGAV D. KARIA, JJ.

Synergy Fertichem (P.) Ltd. v. State of Gujarat

R/Special Civil Application No. 4730 of 2019

6 March, 2019

In favour of assessee.

Petitioner by: Uchit N. Sheth

ORDER

Harsha Devani, J.

Mr. Uchit Sheth, learned advocate for the petitioners invited the attention of the court to the provisions of sections 129 and 130 of the Central Goods and Services Tax Act, 2017, to point out the procedure which is required to be followed by the respondent authorities in case where any goods are in transit in contravention of the provision of the Act or the rules made thereunder. It was pointed out that firstly, under section 129 of the Act, the officer is required to issue a notice as contemplated under sub-section (3) thereof 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 of the Act, that the provisions of section 130 of the IGST Act can be resorted to. The attention of the court was invited to the impugned Show Cause Notice, dt. 1-3-2019, to submit that the same seeks 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. It was further submitted that the integrated goods and services tax has already been paid on the goods in question at the time of import thereof and that the goods in question are perishable goods with a limited shelf-life.

  1. Having regard to the submissions advanced by the learned counsel for the petitioners, Issue Notice returnable on 8th March, 2019.

Direct Service is permitted today.

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