2021 (1) TMI 1200 - HC - GST

Taxability - copper scrap - HELD THAT - On the issue of valuation, it does appear that the petitioner had relied on the certificate of the purchaser dealer at Delhi to establish that the value of goods is not more than ₹ 50 per kg on the other hand, it is not clear as to how and on what basis the valuation had been taken at ₹ 380 per kg that too without adopting the procedure prescribed under the Act. List immediately thereafter.

Summary

Issues:
1. Validity of petitioner's registration certificate
2. Taxability of goods (copper scrap)
3. Valuation of goods not in accordance with law

Analysis:
1. The petitioner, a registered dealer with a valid registration certificate, is involved in a dispute regarding the taxability of copper scrap goods. The origin of the goods from copper wire does not affect their taxability. However, the valuation of the goods is contested, as the petitioner claims a lower value based on a certificate from the purchaser dealer in Delhi. The discrepancy arises from the valuation taken at a higher rate without following the prescribed procedure under the Act.

2. The court has acknowledged the need for further consideration of the matter. The Learned Standing Counsel has been granted four weeks to file a counter affidavit, after which the petitioner will have two weeks to file a rejoinder affidavit. The case is to be listed immediately after these filings.

3. Pending the resolution of the dispute, the court has allowed the provisional release of the goods to the petitioner upon furnishing security. The petitioner must provide cash security at the rate of ?50 per kg for the entire seized goods and alternative security, excluding cash or bank guarantee, at ?330 per kg. This provisionally treats the petitioner as the owner of the goods, subject to the satisfaction of the proper officer.