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AKIL KURESHI, SUDESH BANSAL
Somnath Corporation – Appellant
Versus
State Of Rajasthan – Respondent
JUDGMENT
1. The petitioner has prayed for quashing a notice dated 21.01.2022 and the order of detention of the transport truck with goods which was done by the State GST authorities. The case of the petitioner is that a consignment of cumin seeds originating from Gujarat was in transit through a State, final destination being in Uttar Pradesh. It was intercepted by the GST authorities at Jaipur on the ground that driver of the vehicle did not carry valid document. The petitioner was issued a show cause notice and the goods along with vehicle have been seized, hence the petition.
2. In our opinion subject to the assessment, the vehicle and the goods should be released on certain conditions which power in any case the respondents have under the State GST act. at the very best the expectation of the department could be to tax the goods and impose maximum possible penalty. as long as these amounts are secured, no purpose would be served in taxing the goods in the vehicle. The goods are perishable and the transport vehicle has been stranded.
3. We are informed that the value of goods is approximately Rs.24.84 lacs on which applicable tax would come to approximately Rs.1.24 lacs. Considerin
The appellate authority must consider all objections raised by the petitioner regarding the nature of goods to ensure lawful detention and imposition of tax.
The court affirmed the right to a hearing before the seizure of property, emphasizing the need for due process in administrative actions.
No provisional release of seized vehicle under Sections 129/130 CGST Act pending confiscation proceedings.
Detention and seizure of goods in transit under GST requires clear evidence of contravention; mere discrepancies in documentation cannot justify such actions.
The authority must have jurisdiction to impose penalties; lack of proper authority invalidates orders regarding the detention and valuation of goods.
The court cannot entertain writ petitions against show cause notices; such matters must be verified by the competent authorities.
The court held that writ petitions against show cause notices are not entertained, emphasizing the need for competent authorities to investigate the facts and circumstances of each case.
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