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IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A., J, ZIYAD RAHMAN A.A.
Authentic Metals – Appellant
Versus
Enforcement Officer – Respondent
| Table of Content |
|---|
| 1. overview of jurisdiction and factual background. (Para 1 , 2) |
| 2. challenges regarding procedural adherence. (Para 3 , 5 , 6) |
| 3. interpretation of statutory provisions related to detention. (Para 9 , 10 , 12 , 14 , 15 , 19 , 20 , 22) |
| 4. clarification of statutory interpretation post amendments. (Para 13 , 18 , 21) |
| 5. order for the release of goods, based on statutory interpretations. (Para 41) |
JUDGMENT :
The short question that arises for consideration in this Writ Petition, is with regard to the powers conferred upon the authorities under the Central Goods and Services Tax /Kerala State Goods and Services Tax, Act, 2017 (CGST and KSGST) to hold/retain the goods in transit, during the proceedings of confiscation under section 130 of the CGST Act. Incidentally, another question that arises in this case is whether Section 130 (2) enables the authority concerned, to release the goods as a provisional measure, pending the adjudication proceedings, by accepting the fine in lieu of the confiscation proposed in the notice issued in Form MOV-10.
2.1. The petitioner is a registered taxpayer under the provisions of CGST Act and deals with scrap materials. As part of the business,
Provisional release of goods pending confiscation is not authorized under Section 130 of the CGST Act; legal authority for property deprivation must follow specific statutory provisions.
Definition of the term market value clearly indicates that the term is not referable to the maximum retail price and on the contrary, it is a sale price that is agreed to between a bonafide supplier ....
The court established that confiscation under Section 130 requires prior action under Section 129, and adherence to natural justice is essential in such proceedings.
Point of law: The extraordinary powers under Article 226 of the Constitution, directing for release of the vehicles or goods, during the pendency of the confiscation, can only be sparingly exercised ....
The main legal point established in the judgment is the independence of proceedings for detention of goods under Section 129 and confiscation of goods under Section 130 of the CGST/APGST Act, as expl....
Point of Law - Section 68 of the GST Act which empowers the authority concerned to intercept the vehicle and the goods. The said provision of Section 68 is required to be reproduced.
Section 129 forms part of the machinery provisions under the Act to check evasion of tax and a detention can be justified only if there is a contravention of the provisions of the Act in relation to ....
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