Lakshay Logistics Vs State of Gujarat (Gujarat High Court)
Gujarat High Court quashed the GST MOV-11 confiscation order against M/s. Lakshay Logistics, noting that the transporter was never served with a proper show-cause notice. The case highlights the mandatory requirement under Section 130(4) of the GST Act to provide an opportunity of hearing before confiscation.
Gujarat High Court recently set aside a confiscation order issued under the Central Goods and Services Tax (GST) Act, 2017, against M/s. Lakshay Logistics, a transportation firm. The court’s decision hinged on the fundamental principle of natural justice, specifically the failure of authorities to provide the transporter with a mandatory opportunity of being heard before confiscating its vehicle and goods.
The case, titled Lakshay Logistics Vs State of Gujarat, came before the High Court via a petition filed under Article 226 of the Constitution of India. Lakshay Logistics, a proprietorship firm registered in Rajasthan and engaged in the transportation business, challenged three specific orders: a detention order dated January 5, 2020, issued under Section 129(1) of the GST Act; a subsequent detention/confiscation notice (Form GST MOV-10) dated January 16, 2020; and a final confiscation order (Form GST MOV-11) dated March 16, 2020. The petitioner also sought the release of its truck, bearing registration No. RJ-19-GG-4057, along with the goods it was carrying.
