2020 (8) TMI 334 - HC - GST

Release of detained goods - detention on the ground that the consignment was not supported by the original invoice and there was variation detected in the goods transported from the description in the invoice - HELD THAT - The writ petition is disposed off by directing the 1st respondent to permit the petitioner to clear the goods and the vehicle on furnishing a bank guarantee for the amount demanded in Ext.P5 - Thereafter, the 1st respondent shall forward the files to the adjudicating authority for an adjudication of the dispute under Section 130 of the GST Act, which adjudication shall be completed only after hearing the petitioner, within a period of one month from the date of the files being forwarded to the 2nd respondent. Petition disposed off.

Summary

Issues:
Challenge to detention notice under Section 129 of the GST Act based on discrepancies in consignment and original invoice.

Analysis:
The petitioner challenged a detention notice (Ext.P5) under Section 129 of the GST Act, citing discrepancies in the consignment and original invoice. The respondents objected to the detention on grounds of lack of original invoice support and detected variations in the transported goods. Upon reviewing Ext.P5, the court found the detention prima facie justified, leading to a hearing where the petitioner sought clearance by furnishing a bank guarantee for the demanded amount. The court directed the 1st respondent to allow clearance upon bank guarantee submission, followed by forwarding files to the adjudicating authority for dispute resolution under Section 130 of the GST Act. The adjudication must occur within one month of file submission, ensuring the petitioner's right to be heard. The petitioner was instructed to provide a copy of the judgment and writ petition to the 1st respondent for further processing.