High Court stayed confiscation of goods made simply on confidential information received from higher authorities to stop the vehicle, without satisfying conditions of section 130 of the CGST Act
ABCAUS Case Law Citation:
ABCAUS 2682 (2018) (12) HC
The petitioner had preferred the instant petition before the Hon’ble High Court, initially against the order of seizure.
However, during its pendency, a confiscation order was also passed by the officials, the petition was amended ro also challenge the confiscation order.
The Hon’ble High Court observed that the confiscation order revealed that the seizure and the confiscation order had been passed simply as some confidential information was received from the higher authorities to stop the vehicle.
The Hon’ble High Court noted that as per the confiscation order, pursuant to the order of release passed under Section 129 (3) of the Goods and Service Tax Act, 2017, since tax and the penalty was not deposited, the goods had been seized.
However the Hon’ble High Court observed that the confiscation order was passed without assigning any reason as to if any of the conditions as enumerated under Section 130 of the Act were satisfied.
The Hon’ble High Court ordered that the operation of the confiscation order shall remain stayed and the goods & vehicle of the petitioner shall be released on furnishing security as mentioned in the confiscation order for the release of the goods and vehicle.
