Mukti Gold Private Limited Vs State Tax Officer (Madras High Court)
Madras High Court held that issuance of confiscation notice under section 130 of the TNGST Act justifiable since officials had formed clear cut prima facie opinion that gold jewellery were transported for purpose of sale with intention to evade payment of tax.
Facts- The petitioner operates a jewelery business and moved gold ornaments from Mumbai to Tamil Nadu for displaying to the potential re-sellers and at exhibitions. To manage these activities, the petitioner had appointed Sri Bala Vasavi Jewels and Gems, a Coimbatore-based agent to procure orders and handle logistics.
On July 18, 2024, the petitioner sent gold ornaments weighing 11,835.16 grams, valued at Rs.8.37 Crores, to the Agent with returnable delivery challans. The Agent displayed the jewelery across Tamil Nadu, including at M/s.Bhima Jewelery, to solicit feedback before transporting the goods to Chennai.
On 25.07.2024, the goods were moved from the Agents to Bhima Jewelery, Madurai, to display the goods and invite them for IIJS Show, which was scheduled to be conducted at Mumbai during the month of August, 2024.
On July 26, 2024, while returning to Chennai, the transport vehicle was stopped by the local police near Panruti and the gold ornaments were seized. Thereafter, the notice u/s. 129(3) of the TNGST Act/CGST Act in Form GST MOV-07 was issued. Thereafter, the impugned confiscation notice u/s. 130 of the TNGST Act was issued on 02.08.2024
