1. Mr. Uchit Sheth, learned advocate for the petitioner has invited the attention of the court to the provisions of section 130 of the Central Goods and Services Tax Act, 2017 and more particularly to the third proviso to sub-section (2) thereof, to submit that when any conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon. It was submitted that, therefore, even if an order of confiscation is passed under section 130 of the CGST Act, at best, the petitioner would be required to pay a fine equal to the tax payable on the goods being transported.
2. Mr. Trupesh Kathiriya, learned Assistant Government Pleader has disputed the aforesaid position by inviting the attention of the court to the second proviso to sub-section (2) of section 130 as well as sub-section (3) of section 130 of the Act.
3. Having regard to the submissions advanced by the learned advocates for the respective parties, Issue Notice returnable on 10th October, 2019.
4. By way of ad-interim relief, the second respondent is directed to release the vehicle of the petitioner being truck No.GJ-03-AX-5727 upon the petitioner paying a fine of ₹ 62,024/- (Rupees sixty two thousand twenty four only) as proposed in the notice dated 12.7.2019 issued under section 130 of the Act in lieu of confiscation of conveyance.
5. The above arrangement shall be subject to the final outcome of the petition as well as the final outcome of the proceedings under section 130 of the CGST Act. Till then, such amount shall be treated as a deposit made by the petitioner subject to the final outcome of the proceedings under section 130 of the CGST Act without prejudice to the right of the petitioner to challenge the same before the higher authority in case an adverse order is passed against him. The petitioner shall also file an undertaking before this court to the effect that in case an adverse order is passed against him under section 130 of the CGST Act, he shall pay the differential amount subject to his right to challenge such order.
Direct service is permitted.