Rajkumar Maheshwari vs. Union Of INDIA

Held

The Court directed the petitioner to deposit a sum of Rs. 7,50,000/- before the respondent No.3 within two weeks from the date of the order. Upon such deposit, the petitioner's vehicle bearing number MP-07-GA-8154 shall be released. The Court also permitted the respondents-authorities to continue the proceedings for confiscation under Section 130 of the Act, 2017, while keeping in mind the decision of this Court in the case of Synergy Fertichem Pvt. Ltd. [Special Civil Application No.4730 of 2019 decided on 23rd December 2019]. The writ petition was accordingly disposed of, and the notice stood discharged. The Court did not decide the merits of the confiscation proceedings but facilitated the release of the vehicle upon a conditional deposit.

Facts

The petitioner, Rajkumar Maheshwari, is the owner of a vehicle that was intercepted by the State Tax Officer (Mobile Squad) at Dahod. The vehicle, en route from Gwalior to Surat, was found to be carrying Pan Masala and Tobacco without proper documentation as required under Section 68 of the Central Goods and Services Tax Act, 2017. Consequently, a notice for detention of goods under Section 129(3) was issued on September 2, 2019, followed by a notice for confiscation of goods under Section 130 on September 4, 2019. The petitioner filed a writ application seeking to quash the show cause notice, stay its operation, and secure the release of the vehicle and goods. The petitioner offered to deposit Rs. 7,50,000/- for the release of the vehicle.

Key Issues

1. Whether the Show Cause Notice dated 04/09/2019 issued by the respondent No.3 under Section 130 of the Central Goods and Services Tax Act, 2017, is liable to be quashed and set aside? Petitioner's contention: The petitioner sought to quash the show cause notice and secure the release of the vehicle and goods. The petitioner was willing to deposit Rs. 7,50,000/- to facilitate the release of the vehicle, without prejudice to their rights to contest the confiscation proceedings. Revenue's contention: The learned Assistant Government Pleader, under instructions, agreed to the release of the vehicle upon the deposit of Rs. 7,50,000/- towards tax, interest, and penalty within two weeks. The revenue also stated that they were at liberty to continue the confiscation proceedings under Section 130 of the Act, 2017.