2020 (10) TMI 373 - HC - GST

Detention of goods - allegation that the detention was not justified since it was for reasons totally unconnected with the vehicle, and had more to do with incomplete information furnished by the consignor of the goods - HELD THAT - The goods have been detained on account of various defects in the documents that accompanied the transportation of the goods as per the provisions of the GST Act and Rules. In that view of the matter, I do not see the detention to be unjustified. Taking note of the plea of the petitioner for an expeditious release of the vehicle that is detained, I direct that if the petitioner furnishes a bank guarantee for the tax and penalty amounts demanded in Ext.P5 notice, then the 3rd respondent shall release the goods and the vehicle to the petitioner - Petition disposed off.

Summary

Issues Involved:
Detention of goods carriage vehicle under Section 129 of the GST Act based on incomplete information provided by the consignor.

Analysis:

Detention of Vehicle:
The petitioner, a driver and registered owner of the detained goods carriage vehicle, challenged the detention claiming it was unjustified due to reasons unrelated to the vehicle but linked to incomplete information from the consignor. However, upon reviewing the order passed by the respondents, it was found that the detention was due to defects in the accompanying documents as per the provisions of the GST Act and Rules. The court concluded that the detention was justified based on these grounds.

Judicial Direction:
After hearing arguments from both parties, the court directed that upon the petitioner furnishing a bank guarantee for the tax and penalty amounts specified in the notice, the 3rd respondent should release the goods and the vehicle. This direction aimed at facilitating an expeditious release of the detained vehicle and goods, ensuring compliance with the legal requirements outlined in the notice (Ext.P5).

Conclusion:
In this judgment, the court upheld the detention of the goods carriage vehicle under Section 129 of the GST Act, emphasizing the importance of complying with the documentation requirements set forth in the law. The judicial direction provided a practical solution for the petitioner to secure the release of the vehicle by furnishing a bank guarantee for the specified amounts, thereby enabling the clearance of the goods and the vehicle in a timely manner.