• Research/Scholar Paper name – Constitutional Validity of Section 129 & 130 of The CGST Act, 2017
  • Author: Surya Somanchi
  • Institution: Jindal Global Law School
  • Affiliation: Centre for Study of Contemporary Legal Issues
  • Date of Publication: 04/10/2021

Abstract:

While the search and seizure provisions under the Central Goods and Services Act, 2017 are given an extensive scope to govern the tax misdeeds committed during the transit of goods, it remains to be extremely cumbersome for the proponents of business and commerce. Section 129 & 130 of the GST Act, 2017 elaborate on the procedure and penalties to be followed and imposed due to a tax default during the transit of goods. The consequences faced by the harsh nature of these provisions are its exorbitant penalties, trials of considerable length that deteriorate the quality of the confiscated goods, loss of business to those in default. The short note determines to analyze the search and seizure provisions of the GST Act, while elaborating on the procedure to be followed by an intercepting officer during the transit of goods inter-state and intra-state. The note uses recent landmark judgements to delve into the constitutional validity of these provisions. Subsequently, the paper gives an insight into the impact of these provisions. In doing so, the author gives an infinitesimal example of its harsh nature using Section 74 for comparison. The author addresses the problem at hand by stating that since the statute is still relatively new in nature, effective implementation for a country with an enormous population is difficult. In conclusion, the short note deep-dives into the lacunae of the law, analyzing and reasoning for the much-needed flexibility in its interpretation.

Constitutional Validity of Section 129 & 130 of The CGST Act, 2017

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