2020 (7) TMI 635 - HC - GST

Detention of goods along with the vehicle - invoices did not bear continuous numbers - power to detain a vehicle in the course of transit - section 129 of CGST Act - HELD THAT - In the instant case, it is not in dispute that e-way bills did accompany the goods. It is also not in dispute that the transportation was covered by tax invoices. The objection of the respondents is only that the invoices did not bear continuous numbers and hence they suspect that the invoices bearing serial numbers that fell between the numbers on the invoices produced at the time of transportation, could have been used for transportation of other goods that had not been brought to the notice of the Department. The entertainment of such a doubt by the authority cannot be a justification for detaining the goods in question, especially when they were admittedly accompanied by tax invoices as also e-way bills that clearly indicated the particulars that were required by Rule 46 of the GST Rules - The detention in the instant case cannot be justified under Section 129 of the GST Act. The respondents are directed to forthwith release the goods detained by Ext.P4 notice - petition allowed.

Summary

Issues:
Detention notice under the GST Act due to non-consecutive serial numbers on tax invoices accompanying goods during transportation.

Analysis:
The petitioner, a distributor of home appliances, challenged Ext.P4 detention notice served while transporting goods. The respondent's objection was regarding the non-consecutive serial numbers on the tax invoices accompanying the goods. The detaining authority suspected the use of invoices with numbers in between for other goods not declared. The Government Pleader cited Rule 46(1)(b) of the GST Rules, emphasizing the requirement of tax invoices with consecutive serial numbers. The Court noted the power to detain goods in transit under Section 129 of the GST Act applies to contraventions. The person transporting goods must carry tax invoices and e-way bills as per Section 68 of the GST Act and Rule 138 of the GST Rules. Although the e-way bills and tax invoices were present, the issue was the non-consecutive invoice numbers causing suspicion of undeclared goods.

The Court found the doubt raised by the authority regarding the invoice numbers not justifying the detention of goods accompanied by proper documentation. The goods had valid tax invoices and e-way bills, meeting the requirements of Rule 46 of the GST Rules. The suspicion of using other invoices for undisclosed goods did not warrant the detention under Section 129 of the GST Act. The Court allowed the writ petition, directing the immediate release of the detained goods upon the petitioner presenting a copy of the judgment. The Government Pleader was tasked with informing the respondents to facilitate the prompt release of the vehicle and goods.