2019 (9) TMI 1092 - HC - GST

Detention of goods - undervaluation of an invoice - Section 129 of the CGST Act - HELD THAT - Considering the valuation report dated 30.08.2019 which does not inspire any confidence, issue Notice , returnable on 3rd October 2019 .

Summary

Issues involved:
Detention of goods under section 129 of the Central Goods and Services Tax Act, 2017 based on undervaluation of an invoice and compliance with section 68 of the CGST Act and rule 138(A) of the rules; Confiscation of goods based on a valuation report prepared by a registered valuer for the Additional Commissioner of Commercial Tax.

Analysis:

1. The petitioner's advocate argued that the detention of goods under section 129 of the CGST Act should only occur based on the grounds specified in the Act. It was contended that undervaluation of an invoice should not be a valid ground for detention if all necessary documents under section 68 of the CGST Act and rule 138(A) of the rules have been provided. The advocate highlighted that the person in charge of the conveyance had the required documents and invoices as per the rules, satisfying the provisions of section 68 of the CGST Act.

2. The court was informed about a valuation report prepared by a registered valuer for the Additional Commissioner of Commercial Tax, which formed the basis for seeking confiscation of the petitioner's goods. The report detailed the market value computation of the petitioner's stock. The petitioner raised concerns regarding the credibility of this valuation report during the proceedings.

3. After considering the submissions made by the petitioner's advocate and reviewing the valuation report dated 30.08.2019, the court found the report lacking in credibility. Consequently, the court issued a Notice returnable on 3rd October 2019. As an interim measure, the respondent-authorities were directed to release the truck along with the goods contained therein. However, the petitioners were required to provide an undertaking to cover the liability in case they failed in the case. Direct service of the order was permitted on the same day.

This detailed analysis of the judgment provides insights into the legal arguments presented, the valuation report's significance, and the court's decision to issue a Notice and grant interim relief for the release of goods pending further proceedings.