ORDER :

1. By way of this petition, the petitioner seeks to invoke the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India seeking to quash and set aside the notice issued in Form GST MOV-10 dated 15.11.2022 under Section 130 of the Central/Gujarat/Integrated Goods and Services Tax Act, 2017 (“GST Act” hereinafter) as well as the notice order of detention in Form GST MOV-06 dated 15.11.2022 under Section 129 of the Act. The appropriate directions are being sought against the respondent authorities for immediate release of the Truck bearing Registration No. GJ-10-TX-7383 along with the goods contained therein seized under the GST Act.

2. The petitioner is Limited Liability Partnership (LLP) Firm filing this petition through one of the partners who is a citizen of this Country. Respondent no. 1 is a Commissioner of State Tax and exercises jurisdiction under the provisions of GST Act within the State of Gujarat.

2.1. The petitioner is engaged in trading of ceramics and scrap and is registered person under the GST Act. The petitioner got the order for supply of iron and steel waste from JP Steels and Iron, Kharasiya, Chhattisgarh. The Tax Invoice No. 035 dated 08.11.2022 had been generated by the petitioner for the value of the goods and the same was given to the transporter. The task of transferring of the goods was given to one M/s. S.K. Logistics. The e-way bill for the conveyance for the tax invoice was generated. The e-way generated by the petitioner was automatically given a system generated number being 6314 8458 9460. The e-way bill also had the reference to tax invoice generated by the petitioner and the transport company was entrusted with the task of moving the consignment. The e-way bill as well as the tax invoice mentioned the details of the truck through which the goods were transported being the Registration No. GJ-10-TX-7383. It is the say of the petitioner that the driver produced all the relevant documents to explain the veracity of transaction and the conveyance was carrying 35,530 kgs. of the scrap iron.

2.2. The vehicle transporting the goods was intercepted on 09.11.2022 at Songadh, Surat. After recording the statement of the driver in MOV-01, the order for inspection of the goods and vehicle was passed in MOV-02 on 09.11.2022. The physical verification was carried out on 15.11.2022 where no discrepancy was found. It is averred by the petitioner that the order of detention under Section 129(1) of the Act passed in Form GST MOV-06 on 15.11.2022 was quite surprising although the driver had produced all the papers before the respondent no. 2.

2.3. A show cause notice in Form GST MOV-10 had been issued for confiscation under Section 130 of the GST Act without following the procedure as stipulated under Section 129 of the GST Act. The notice specifies that the petitioner is operating from an apartment and the movements of goods of suppliers of the petitioner could not be traced in RFID. The petitioner was called to clarify the discrepancies, however, without waiting for the petitioner’s response to the show cause notice, the impugned show cause notice under Section 130 of the Act had been issued.

2.4. The petitioner filed reply dated 28.11.2022 urging that the assessment proceedings either under Section 73 or 74 of GST Act are required to be completed and therefore, Section 130 (GST Act) notice is not to be invoked under such circumstances. The petitioner is a bona-fide dealer and the goods were duly accompanied by the invoice, transport receipt and the e-way bill and there was no intention to evade the taxes.

2.5. It is averred by the petitioner that Section 129(1) of the GST Act provides for release of the goods detained/seized under that Section on payment of applicable tax and penalty. Non-release of the goods seized/detained despite the petitioner having made such payment of the tax and penalty is without jurisdiction. The issuance of the notice under Section 130 in purported exer