GST authorities must issue a show-cause notice to the consignee before deciding alleged tax evasion.

The petitioner, a GST-registered consignee, challenged the detention of three containers carrying its goods at the Amingaon Railway Yard.

State tax officials were verifying 80 consignments amid suspicions of undervaluation, underweight declarations and tax evasion.

The authorities issued a show-cause notice dated 18.05.2023 to the transporter, Respondent No. 4, concerning alleged non-uploading of Part-B of the e-way bill, but did not issue a notice to the petitioner.

The Court had stayed auction of the goods; the State did not file an affidavit-in-opposition but produced an instruction explaining the detention and notice to the transporter

The Court referred to Section 129 of the Assam Goods and Services Tax Act, 2017, under which action concerning the detained goods was contemplated

the proceedings be decided in accordance with the AGST Act and its rules, read with the Integrated Goods and Services Tax Act, 2017 and its rules

a party who may provide relevant documents to address the allegations concerning detained goods must be given notice and an opportunity to respond

The dispute concerned whether the goods were undervalued or underweight, or whether tax evasion had occurred.

The authorities had issued a notice only to the transporter, whose representative admitted non-uploading of Part-B of the e-way bill; the petitioner had not been given an opportunity to produce documents addressing the allegations.

Because the petitioner could assist in resolving the factual dispute, the Court considered that a notice to the petitioner was necessary before the matter could be decided

The petitioner may reply with supporting documents, and the authority must decide the proceedings under the applicable AGST and IGST legislation and rules.

If aggrieved by the decision, the petitioner may approach the appropriate forum