1. Home

SGST High Court Cases

GST - Interplay between Section 129 and 130 of the CGST Act, 2017 - Inspection and verification of goods in transit – Challenge to Order of Confiscation - Non-affixture of DIN Number on the order of confiscation - issue of notices Form GST MOV-10 under Section 130 of the CGST Act, 2017 without invoking the provisions of Section 129 of the Act - Petitioner contention that if the goods being transported in contravention of the provisions of the Act, the authorities can at best initiate action for detention and seizure under Section 129 of the CGST Act but in the present case, without invoking the provisions of Section 129 of the CGST Act respondent had straight away issued notices under Section 130 of the CGST Act - Whether action taken under Section 130 of the CGST Act, without a prior invocation of Section 129 of the Act would render the proceedings under Section 130 of the CGST Act as invalid – HELD - The CBIC Circular No. 41/15/2018-GST, dated 13.04.2018 set out the procedure for interception of conveyances for inspection of goods in movement and detention, release and confiscation of such goods and conveyance - A reading of clause-II (l) of Circular No. 41/15/2018-GST shows that the CBIC had also understood the scheme of Section 129 and 130 of the CGST Act to be two provisions that operate in two separate fields and that provisions of Section 130 can always be invoked directly without a prior invocation of Section 129 of the CGST Act – Further, while the Section 129 applies only when goods are being transported, in the case of Section 130, confiscation of goods or conveyances and levy of penalty can be done subject to any of the five conditions enumerated in Section 130(1) being available. This would mean that invocation of Section 129 will not precede all cases where Section 130 is invoked - In the present case, the order of confiscation contains various details which were not placed before the petitioners in the show cause notices. Not responding to the request of the petitioners for supply of the material on the basis of which the show cause notice has been issued would also amount to violation of the principles of natural justice – Secondly, the requirement of every order or communication of the tax authorities to contain a DIN number is found in Circular No.128/47/2019-GST, dated 23.12.2019. The circular does not make any distinction between orders communicated directly to the dealers and order which are uploaded on the portal. The non-mention of DIN militates against the validity of the proceedings – the confiscation orders in FORM GST MOV-11 are set aside and the matters are remanded back to the respondent for proper adjudication following principles of natural justice – the writ petition is allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

GST Video

GST Amnesty Scheme from 1st Nov
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?