Gujarat High Court rules on GST confiscation and appeal procedures

The Gujarat High Court has addressed legal challenges regarding Goods and Services Tax (GST) confiscation proceedings. In the case of M/s Shreeji Steel v. State Tax Officer, the court ruled that alleging a lack of authority or unfair hearings is insufficient to bypass statutory appeal processes. Taxpayers must demonstrate specific legal defects and provide evidence to justify direct intervention by the High Court rather than utilizing the standard appeal mechanism under Section 107.

In a related legal context involving Panchhi Traders, the court examined the relationship between detention under Section 129 and confiscation under Section 130 of the CGST Act. The dispute centered on whether authorities must complete detention proceedings before initiating confiscation, particularly following amendments in the Finance Act, 2021. Petitioners argued that confiscation requires a proven intent to evade tax and cannot be triggered solely by discrepancies in e-way bills or portal information without a thorough investigation.