Cheenu Amma Aalloy Private Limited vs. State Tax Officer

Held

The High Court held that the confiscation orders were invalid as they failed to reflect a reasoned consideration of the petitioner's objections/explanation, despite statements being taken. The absence of reasons in the orders, as required by principles of natural justice and the statutory format (Form GST MOV-11), indicated a non-application of mind by the adjudicating authority. The orders were quashed and the matter remanded.

Facts

Cheenu Amma Aalloy Pvt. Ltd.'s goods (MS Billets) were intercepted while in transit, and notices for confiscation under Section 130 of the GST Act were issued. Confiscation orders were subsequently passed, which the petitioner challenged, alleging inadequate opportunity to object and lack of reasoned consideration of their explanation. The respondent claimed the vehicles were used for multiple transports and that a hearing was provided by taking statements.

Key Issues

The key legal issue was whether confiscation orders passed under Section 130 of the GST Act are valid if they do not contain reasons reflecting consideration of the assessee's objections, thereby violating principles of natural justice and statutory procedural requirements.