Gujarat HC set aside confiscation order as SCN and order were not served on owner of goods

Case Details: Tanay Creation v. State of Gujarat - [2021] 133 taxmann.com 78 (Gujarat)

Judiciary  and Counsel Details

• • Ms. Sonia Gokani and Hemant M. Prachchhak, JJ.
  • Dhaval Shah for the Petitioner.
  • Ms. Maithili Mehta for the Respondent.

Facts of the Case

The petitioner was engaged in the trading of gray fabrics. The goods of petitioner were detained by the department on the grounds that there was a mismatch in the invoice and E-Way Bill, absence of receiver’s name and full address in the documents. The tax and penalty was paid but goods were not provisionally released and department passed confiscation order. The petitioner contended that show cause notice and order were served on truck driver and personal hearing was not provided and filed petition before the High Court.

High Court Held

The Honorable High Court observed that the owner of goods was not afforded the opportunity of personal hearing and no show cause notice was issued to him or the owner of conveyance. The order was served on the truck driver instead of the owner of goods. Thus, the impugned order was liable to be quashed and set aside as there was a complete breach of principles of natural justice. Also, the department was directed to issue fresh show cause notice and give opportunity of personal hearing to the owner of goods.