Case Law Details
Chirag Steel Vs the State of Punjab & Others (Punjab and Haryana High Court)
Punjab & Haryana HC issues Notice of Motion to consider whether Section 130 can be invoked for confiscation of goods and conveyance in transit after amendment as the said section has been amended vide Finance Act, 2021 effective from 01.01.2022.
Relevant Provisions:
Section 130 of the CGST Act, 2017 & Punjab GST Act, 2017.
Brief Facts:
In the present case, petitioner purchased goods through broker and when the goods were being transported, the same were inspected and detained by the State Tax Officer-Mobile Wing on the ground that owner/driver had not tendered relevant documents. Consequently, the Assisstant Commissioner of State Tax confiscated the goods and conveyance u/s 130 of CGST Act, 2017, and issued notice in Form GST MOV-10. Hence, the petitioner has challenged the confiscation of goods and conveyance in transit under Section 130 of the CGST Act/Punjab GST Act, 2017
Issue:
Whether Section 130 can be invoked for confiscation of goods and conveyance in transit after amendment vide Finance Act, 2021 effective from 01.01.2022 ?
Order:
A Bench headed by Hon’ble Justice Ajay Tewari heard the submissions of Advocate Sandeep Goyal, appearing on behalf of Petitioner who contended that the said notice is without jurisdiction as the source of deriving power to confiscate the goods and vehicle, itself is not in existence at the time of issuance of the notice as Section 130 got amended w.e.f. 01.01.2022 and now the power to detain the goods in transit is only available under section 129.
The Hon’ble Division bench on hearing the contention of the petitioner issued Notice of Motion to the Respondents (Revenue Authorities) with respect to the relief as prayed for.
The next date of hearing is 15.03.2022.
