Muhammad Saleem Shemsudeen vs. The Enforcement Officer
Held
The High Court held that post-amendment, Sections 129 and 130 of the CGST Act are independent, and Section 130 can be directly invoked if there's an intent to evade tax, as per Circular No. 41/15/2018-GST. Finding no extraordinary circumstances and noting the availability of an alternative statutory remedy under Section 107, the Court declined to interfere with the confiscation order.
Facts
The petitioner, a registered GST dealer, challenged a confiscation order (Ext.P12) issued under Section 130 of the CGST Act. His consignment of iron scrap was intercepted, and after show cause notices alleging dummy/fake inward supplies and suspended suppliers, the goods and conveyance were confiscated. The petitioner contended that proceedings should have first been initiated under Section 129 before Section 130.
Key Issues
The key legal issue was whether proceedings under Section 130 of the CGST Act could be directly initiated without first invoking Section 129, especially when there was an allegation of intent to evade tax.
Sections Cited
Section 130, Section 129, Section 107, Circular No. 41/15/2018-GST
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS THURSDAY, THE 27TH DAY OF JULY 2023 / 5TH SRAVANA, 1945 WP(C) NO. 24656 OF 2023 PETITIONER: MUHAMMAD SALEEM SHEMSUDEEN, AGED 46 YEARS AGED 46 YEARS, PROPRIETOR, INDIAN SCRAP SUPPLIER, 9/172 C1, MUHAMMED ZACHARIYA BUILDING, KARAVAKKARAN PARAMBIL, KAYAMKULAM, ALAPPUZHA., PIN – 690515 BY ADVS.V.DEVANANDA NARASIMHAM P.H.RIYAS RESPONDENTS: 1 THE ENFORCEMENT OFFICER ENFORCEMENT SQUAD, KSGST DEPARTMENT, ASRAMAM- P.O, KOLLAM, PIN – 691002 2 THE STATE TAX OFFICER TAX PAYER SERVICE CIRCLE, KSGST DEPARTMENT, 6TH FLOOR, REVENUE TOWER, HARIPAD, ALAPPUZHA, PIN – 690514 3 THE SECRETARY TO TAXES GOVERNMENT OF KERALA, THIRUVANANTHAPURAM, PIN – 695001 4 THE CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NEW DELHI, PIN - 110001 SR GP SMT THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.07.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO.24656 OF 2023 JUDGMENT Dated this the 27th day of July 2023 The writ petition is filed, inter alia, to quash Ext.P12 confiscation order passed by the f
The judgment continues below.
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