GST
TRT-2025-
Madras High Court
Date:-25-01-25
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 27 January 2025
Parties: Mukti Gold Private Limited Vs State Tax Officer
Facts –
- The Petitioner, Mukti Gold Private Limited, transported gold ornaments from Chennai to its Agent at Coimbatore with returnable delivery challans. Thereafter, the Agent took the goods for displaying it to the customers, including M/s.Bhima Gold at Madurai. After displaying the gold, the goods were brought back to the petitioner by its Agent from Dindugal to Chennai.
- At the en route from Dindugal to Chennai, the goods were intercepted at Panruti and the gold ornaments were seized.
- It was contented that as per the provisions of Rules 138 and Rule 55 of the CGST Rules, e- way bill is exempted in the event if the goods were carried for exhibition or showcasing the samples to the customers, i.e., other than by way of sale.
Issue –
- Whether the confiscation notice issued under Section 130 of the TNGST Act is valid?
Order –
- The Single Bench of Hon’ble High Court observed that the Officials have come to the conclusion that the goods were transported only with the intention of evading the payment of tax under the pretext that the gold jeweleries were carried to showcase the same to its customers, by misusing the provisions of Rules 138 and Rule 55 of the CGST Rules. In the impugned notice also, the Officials have clearly stated all the aforesaid aspects.
- Further, if there is any provision contained in the Act with regard to the seizure in any other manner, Section 129 will supersede over the same. Therefore, as far as confiscation is concerned, the said non-obstante clause available in Section 129 will not supersede the provisions of Section 130, since Section 129 only talks about the seizure of the goods and not about confiscation. Thus, both these Sections are independent in nature.
- Hence the Court is of the view that there is no merits in this writ petition. Accordingly, the petition is dismissed by granting liberty to the petitioner to file their reply for the impugned confiscation notice dated 02.08.2024, issued by the respondent, within a period of 15 days.
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