Andhra Pradesh High Court - Amravati
M/S. Matrix Traders, vs The Deputy Assistant ... on 4 May, 2022
Bench: A V Sai, Ravi Nath Tilhari
HIGH COURT OF ANDHRA PRADESH
MAIN CASE No: W.P.No.12843 of 2022
PROCEEDING SHEET
Sl. OFFICE
DATE ORDER
No NOTE
04.05.2022 AVSS,J & RNT,J
Issue notice to the respondents.
Heard Sri Sameer Gupta, learned counsel
appearing for Sri S.Vivek Chandra Sekhar,
learned counsel for the petitioner and Sri
Y.N.Vivekananda, learned Government Pleader for
respondents.
It is submitted by the learned counsel for
the petitioner that the action impugned in the
present Writ Petition is totally one without
jurisdiction and that as per Article 265 of the
Constitution of India, no tax should be levied or
collected except by authority of law. It is further
contended that by invoking the provisions of
Section 130 of the Central Goods and Services Tax
Act, 2017, (for short 'the Act'), 1st respondent
herein acted without jurisdiction. It is further
submitted by the learned counsel that vide
Finance Act, 2021, Sections 129 and 130 were
amended to the effect that 'Non-Obstente' Clause
was removed from Section 130, while retaining the
Non-Obstente clause in Section 129 of the Act and
that the said amendment came into effect from
01.02.2022 and as such from the said date,
Section 129 of the Act shall have over riding effect
on Section 130 of the Act. It is further contended
by the learned counsel that language of Section
W.P.No.12843 of 2022
129 clearly indicates that the same is specific
provision which deals with the goods in transit. It
is further stated by the learned counsel that in
respect of cases pertaining to goods in transit, if at
all any penalty is leviable, the same shall be levied
under Section 129 of the Act. It is further
submitted that the Non-Obstent8e clause in
Section 129 of the Act is indicative of the
legislative intent to prevent the application of any
other provisions of the Act with respect to goods in
transit. It is further stated by the learned counsel
that show cause notice, which is impugned in the
Writ Petition also makes it manifest that the goods
were inspected when they were in transit under
Section 68(3) of the Act. In support of his
contentions and submissions, learned counsel has
places reliance on the judgment of the Gujarat
High Court in the case of Synergy Fertichem
Private Limited vs. State of Gujarat, reported in
2020 (33) G.S.T.L.513 (Guj.). Learned counsel
also placed on record an interim order passed by
Gujarat High Court dated 30.03.2022, in
M/s.Shanti Metal Industries vs. State of
Gujarat.
On the other hand, strongly resisting the
Writ Petition, it is submitted by Sri
Y.N.Vivekananda, learned Government Pleader
that the deletion of Non-Obstente clause from
Section 130 of the Act does not take away power
of the respondent authorities to invoke the said
provision of law and the provisions of Sections
129 and 130 are independent and the authorities
are authorized to exercise the power under the
said provisions of law. It is further submitted by
the learned Government Pleader that the
contention of the learned counsel for the
petitioner, if accepted, the same would render
W.P.No.12843 of 2022
Section 130 of the Act redundant.
When same issue came up for consideration
before the Gujarat High Court, Division Bench of
the Gujarat High Court in the case of M/s.Shanti
Metal Industries vs. State of Gujarat, granted
interim order subject to the petitioner therein
depositing penalty and directed release of goods
and conveyance.
The issues raised in the present Writ
Petition are required to be re-examined after filing
counter by the respondents.
Having regard to the contentions advanced
by the learned counsel for the petitioner, there
shall be stay of further proceedings pursuant to
the impugned show cause notice dated
16.04.2022 and the subject goods and conveyance
shall be released subject to the petitioner paying
1/4th of the amount proposed by the respondent
authorities in the impugned show cause notice
and on execution of personal bond for rest of the
amount.
________
AVSS,J
_ __
RNT,J
vsl
W.P.No.12843 of 2022
W.P.No.12843 of 2022
W.P.No.12843 of 2022
