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4. Subsection (3) of section 129 of the CGST Act provides that the proper officer detaining or seizing the goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c). Subsection (4) provides that no tax, interest or penalty shall be determined under subsection (3) without giving the person concerned an opportunity of being heard.

5. In the present case, the show-cause notice dated 01.03.2019 has been issued under section 130 of the CGST Act calling upon the petitioner to show cause as to why the goods in question as well as the vehicle should not be confiscated for nonpayment of an amount of Rs.60,72,639/, as detailed therein. On a query by the Court, the learned Assistant Government Pleader is not in a position to point out that the procedure, as contemplated under subsections (3) and (4) of section 129 of the CGST Act, has been followed. Thus, prima facie, it appears that the showcause notice under section 130 of the CGST Act has been issued without complying with the requirements of section 129 of the CGST Act. It is also an admitted position that the goods in question are perishable in nature.

"(I) Whether proceedings for confiscation of goods or conveyances (and also levy of penalty) under Section 130 of the CGST Act can be initiated without first following the procedure laid down under Section 129 of the CGST Act?
(II) Whether procedure and proceedings for confiscation of goods or conveyances (and also levy of penalty) under Section 130 of the CGST Act are permissible even after the procedure of Section 129 of the Act was followed i.e., amount referred in sub-section (1) was paid by the concerned person?
3.THE DEMAND OF TAX AND PENALTY UNDER SECTION 129 OF THE GST ACT AS A CONDITION TO RELEASE OF GOODS IS ILLEGAL, ARBITRARY AND UNWARRANTED; and (ii) SECTION 129(1)(B) OF GST ACT IS VIOLA'I'IVE OF ARTICLE 14 AND 19(1) (G) OF THE CONSTITUTION OF INDIA is not correct considering the fact that In terms of rule 129(1) of the CGST Act, 2017 where any goods are transported in contravention of the provision of the CGST Act, 2017 or the rules made there under all such goods and conveyance used as a means of transport for carrying the said goods and conveyance shall be liable to seizure and shall be released in terms of provisions contained in the rule. The averment of petitioner that it is only a minor interaction and does not warrant action in terms of section 129 of the CGST Act is not on the lines of the settled legal position. The requirement of transportation of goods under the cover of valid specified documents is to be mandatorily followed. Non compliance of the same is to be processed as per law. There is no physical control on such supply of goods and services. The control is effected through documents. For regulation of the activities of supply certain documents have been prescribed. The scheme of levy and collection of GST envisages compliance of applicable law inter alia through these documents. There may be major or minor violations relating to the documents. Board vide Circular No. 64/38/2018GST dated 14.09.2018 has clarified the situations of minor violations pertaining to invoice/e-way bills/any other documents accompanying the consignment where proceedings under section 129 of the CGST Act, 2017 may not be initiated. The lapse/violation involved in the instant case does not appear minor in nature as elaborated in the Board circular No 64/38/2O18-GST dated 14.09.2018. The entire mechanism is meant to ensure that there is no leakage of revenue by way of supply/movement of goods. It appears that in the instant case there was an attempt to violate the provision of law, which if undetected, could have resulted in defrauding government revenue. 0n interception of the vehicle and ascertaining commitment of violations by the concerned persons, mandatory penal provisions were invoked.
4. Whereas, section 129 of the CGST Act provides for detention and seizure of goods and conveyances and their release on the payment of requisite tax and penalty in cases where such goods are transported in contravention of the provisions of the CGST Act or the rules made thereunder. It has been informed that proceedings under section 129 of the CGST Act are being initiated for every mistake in the documents mentioned in para 3 above. It is clarified that in case a consignment of goods is accompanied by an invoice or any other specified document and not an e-way bill, proceedings under section 129 of the CGST Act may be initiated.