Facts :
The petitioners’ goods were intercepted in transit and proceedings were initiated under Section 129 of the CGST Act for detention and seizure. 
Subsequently, authorities issued notices in Form GST MOV-10 invoking Section 130 for confiscation without completing Section 129 proceedings. 
The petitioners challenged such action contending that post-amendment, Sections 129 and 130 are independent and confiscation cannot be initiated midway. 
They also argued that confiscation requires intent to evade tax and cannot be presumed at interception stage.

Court Decision:
The Court held that Sections 129 and 130 of the CGST Act are independent and mutually exclusive provisions. 
It was held that even after amendment, there is no bar on invoking Section 130 at the stage of detention if the authority forms an opinion of tax evasion. 
However, invocation of Section 130 requires existence of material indicating intent to evade tax and cannot be based on mere suspicion. 
The Court recognized that confiscation can be initiated at threshold, but reasons must be recorded and the case must justify such action. 
It upheld the legal position that proceedings under Sections 129, 130, and 73/74 operate in distinct fields and are not dependent on each other.

Cases Referred:

• Synergy Fertichem Pvt. Ltd. vs State of Gujarat
• ASP Traders vs State of U.P. & Ors.
• Dhanlaxmi Metals vs State of Gujarat
• Rajiv Traders vs Union of India
• State of West Bengal vs Kesoram Industries Ltd.
• State of West Bengal vs Sujit Kumar Rana
• Mohammad Abdul Samad vs State of Telangana