GST confiscation order cannot be issued without granting fair opportunity of hearing: HC

The Uttarakhand High Court holds that a GST confiscation order cannot be issued without granting the taxpayer a fair opportunity of hearing since such a practice is considered a contravention of Section 130 of the GST Act. Consequently, the GST order was set aside.

The goods and vehicles of the petitioner, Wastepe India Private Limited, were confiscated by the GST authorities through an order dated March 26, 2026, passed under Section 130 of the Central / State GST Act. The petitioner claimed that it was not granted any opportunity of personal hearing before issuing the impugned order of confiscation, which is unfair as per the GST law.

The tax authorities accepted that the confiscation order did not mention any personal hearing being given to the petitioner. However, the impugned order was issued after considering the petitioner’s written reply. When the court analysed arguments from both sides, it clarified that merely reviewing a written response does not fulfil the requirement of granting a proper hearing. The tax authorities must still grant an opportunity of personal hearing to the petitioner before issuing an order for confiscation.

The high court highlighted that such a practice is considered a violation of the provisions of Section 130 of the GST Act. Considering the same, the court set aside the impugned confiscated order dated March 26, 2026, and sent the case back to the GST authorities for fresh consideration only after providing the petitioner with a fair hearing.