No order for confiscation of goods or conveyance or for imposition of penalty would be issued without giving the person an opportunity of being heard, the impugned order of confiscation would be in violation of Section 130(4) of the GST Act.
Section 130 of the CGST Act, 2017— Goods in Transit —–The petitioner challenged the detention / confiscation notice dated 16.01.2020 in Form GST MOV-10 and the order of confiscation dated 16.03.2020 in Form GST MOV-11. Further prayed for release the conveyance (truck) along with the goods contained therein. The petitioner submitted that he is engaged in the business of transportation, his vehicle was detained and upon certain discrepancies and deficiencies being noticed, the proceedings were initiated for detention and confiscation under the Act. He was never served with any notice before the order of confiscation passed on 16.03.2020 in Form MOV-11. The respondent submitted record of notice. The court observed that notice is addressed to consignor and not to the transporter. The confiscation order dated 16.03.2020 not only confiscates the goods but also the conveyance. Further, Section 130 (4) provides that no order for confiscation of goods or conveyance or for imposition of penalty would be issued without giving the person an opportunity of being heard. The person in the said context would be the person interested in the goods as also the conveyance. Therefore, opportunity of being heard is to be given to both the owner of the goods as also the owner of the conveyance.
Held that:- The Hon’ble High Court allowed the petition and quashed the order of confiscation dated 16.03.2020. Further remanded the matter to the competent authority to pass a fresh order strictly in accordance with law after affording opportunity of hearing to the parties concerned.
No order for confiscation of goods or conveyance or for imposition of penalty would be issued without giving the person an opportunity of being heard, the impugned order of confiscation would be in violation of Section 130(4) of the GST Act.
Section 130 of the CGST Act, 2017— Goods in Transit —–The petitioner challenged the detention / confiscation notice dated 16.01.2020 in Form GST MOV-10 and the order of confiscation dated 16.03.2020 in Form GST MOV-11. Further prayed for release the conveyance (truck) along with the goods contained therein. The petitioner submitted that he is engaged in the business of transportation, his vehicle was detained and upon certain discrepancies and deficiencies being noticed, the proceedings were initiated for detention and confiscation under the Act. He was never served with any notice before the order of confiscation passed on 16.03.2020 in Form MOV-11. The respondent submitted record of notice. The court observed that notice is addressed to consignor and not to the transporter. The confiscation order dated 16.03.2020 not only confiscates the goods but also the conveyance. Further, Section 130 (4) provides that no order for confiscation of goods or conveyance or for imposition of penalty would be issued without giving the person an opportunity of being heard. The person in the said context would be the person interested in the goods as also the conveyance. Therefore, opportunity of being heard is to be given to both the owner of the goods as also the owner of the conveyance.
Held that:- The Hon’ble High Court allowed the petition and quashed the order of confiscation dated 16.03.2020. Further remanded the matter to the competent authority to pass a fresh order strictly in accordance with law after affording opportunity of hearing to the parties concerned.