2019 (12) TMI 924 - HC - GST

Detention order - discrepancy noticed after the physical verification of the goods and conveyance - section 129(1) of the Central Goods and Services Tax Act, 2017 - HELD THAT - Issue Notice, returnable on 20th December 2019.

Summary

Issues:
Challenge to detention order under section 129(1) of the CGST Act for discrepancy noticed after physical verification of goods and conveyance; Allegation of no contravention in respect of goods in transit; Lack of specification of the clause of section 130 of the CGST Act infringed in the notice; Issuance of notice under section 130 to the driver instead of the person contravening the provisions of the CGST Act.

Analysis:
The petitioners challenged the detention order made under section 129(1) of the Central Goods and Services Tax Act, 2017 (CGST Act) due to a discrepancy noticed after the physical verification of goods and conveyance. They argued that the order was silent on the discrepancy and the notice issued under section 130 of the CGST Act did not relate to the goods in transit. It was contended that the notice did not specify which clause of section 130 had been infringed in the present case, as required by the law. Additionally, the petitioners highlighted that the notice under section 130 should have been issued to the person contravening the provisions of the CGST Act, not to the driver, who was not the appropriate individual to respond to such a notice.

The court, after considering the submissions made by the petitioners, decided to issue a Notice returnable on 20th December 2019. The court also allowed direct service on the respondents, permitting the petitioners to serve the respondents directly through Speedpost at their own cost. This decision indicates that the court acknowledged the arguments presented by the petitioners regarding the deficiencies in the detention order and the notice issued under section 130 of the CGST Act. The court's decision to issue a Notice suggests that further examination and clarification are required regarding the issues raised by the petitioners concerning the legality and procedural aspects of the detention order and the subsequent notice under the CGST Act.