Shri Anant Jignesh Shah, Proprietor of M/S. Nakoda and company Vs. The Union of India (Gujarat High Court)
The Hon’ble Gujarat High Court in Shri Anant Jignesh Shah, Proprietor of M/S. Nakoda and company Vs. The Union of India [R/Special Civil Application No. 12712 of 2020 dated November 6, 2020] set aside the order and held that the show cause notice under Section 130 of the Central Goods and Services Tax Act, 2017 (CGST Act) cannot be issued on a mere suspicion. There has to be some prima facie material on the basis of which the authority may arrive at the satisfaction that the goods are liable to be confiscated under Section 130 of the CGST Act.
Facts:-
Anant Jignesh Shah (“Petitioner”) is engaged in the business of trading of pan masala, who had placed an order with M/s. Atharva Enterprises, Ujjain, Madhya Pradesh for supply of pan masala amounting to Rs. 35,74,155/-. The said goods were to be transported from Ujjain, Madhya Pradesh on September 8, 2020 in a vehicle bearing No. MP-13-GA-9108 and were to be delivered at Ahmedabad, Gujarat and for the same E-way bill generated was valid for the period between September 08, 2020 to September 13, 2020.
On September 12, 2020, the vehicle carrying the goods got intercepted by the Mobile Squad of the State Tax Officer (“Respondent No. 2”), who subsequently confiscated the goods along with the vehicle and passed an order of detention under Section 129(1) of the CGST Act in Form GST MOV-06, dated September 13, 2020. Thereafter, Show Cause Notice (“SCN”) in Form GST MOV-10 dated, September 15, 2020 got issued.
The SCN stated that the Petitioner had generated E-way Bill No. 631216432684 on September 8, 2020. Thereafter, on September 9, 2020, they had gone to Ujjain by taking goods together with E-way bill Nos. 681216854838, 681216855819, 631216832772 etc. and had returned on September 12, 2020 by loading the goods from Ujjain. At that time, the tax bill dated September 8, 2020 was produced when the vehicle was intercepted. Thus, stated that the Petitioner has generated E-way bill but has transported the goods twice on the very same bill.
Being dissatisfied with the issue of SCN in Form GST MOV-10, hence, the present writ application has been filed.
Issue:-
Whether the ground on which the authority proposes to confiscate the goods and the vehicle is tenable in law?
Held:-
The Hon’ble Gujarat High Court in R/Special Civil Application No. 12712 of 2020 dated November 6, 2020 held as under:
