2020 (12) TMI 361 - HC - GST

Detention of goods - transport of beverages - classification disputes - Section 129 of the GST Act - HELD THAT - Taking note of the reason cited in Exts.P1 and P1(a) order and notice respectively and finding that what has been raised is a classification dispute which does not come within the ambit of the power conferred on the detaining authority under Section 129 of the GST Act, I quash Exts.P1 and P1(a) and direct the respondent to release the goods and the vehicle covered by Exts.P1 and P1(a) to the petitioner on the petitioner producing a copy of this judgment before the respondent. Petition disposed off.

Summary

Issues:
Detention of goods due to classification disputes under Section 129 of the GST Act.

Analysis:
The petitioner challenged the Ext.P1 order of detention and Ext.P1(a) notice issued for detaining a consignment of beverages over classification disputes. The petitioner argued that detaining goods for classification disputes is not permissible under Section 129 of the GST Act, citing previous judgments. The court heard both parties, and upon reviewing the reasons cited in the order and notice, concluded that a classification dispute does not fall within the detaining authority's power under Section 129. Consequently, the court quashed Exts.P1 and P1(a) and directed the respondent to release the goods and the vehicle to the petitioner upon presenting a copy of the judgment. The Government Pleader was instructed to inform the respondent about the judgment for prompt clearance of the goods and vehicle.

This judgment clarifies that detaining goods solely based on classification disputes is not valid under Section 129 of the GST Act. The court emphasized that the power conferred on the detaining authority does not extend to resolving classification issues. By quashing the detention order and notice, the court upheld the principle that detentions under Section 129 should be for reasons within the statutory framework. The directive to release the goods upon presenting the judgment ensures that the petitioner is not unduly burdened due to an improper detention based on classification disputes.

The court's decision sets a precedent that classification disputes cannot be the sole reason for detaining goods under Section 129 of the GST Act. By emphasizing this point, the judgment reinforces the importance of adhering to the legal provisions and limitations when exercising powers conferred by the law. The clear directive to release the goods and vehicle upon presenting the judgment underscores the court's commitment to ensuring that detentions are lawful and justified. This ruling provides clarity on the scope of authority under Section 129 and safeguards against arbitrary detentions based on disputes unrelated to the provisions of the GST Act.