2022 (4) TMI 703 - HC - GST

Detention of goods alongwith the vehicle - inter-State transaction - mismatch of place of delivery in the E-way bill - HELD THAT - It appears that the writ applicant has also filed a representation dated 9th March 2022 which has been annexed at page 36 as Annexure F pointing out that there is a clerical error in the invoice and as regards the discrepancy in the place of delivery, it has been pointed out that the writ applicant has two registered place in the GST. One is the principal place and the other one is additional place. It appears that although the representation is of 9th March 2022, the State Tax Officer has not yet looked into it and has not taken an appropriate decision. Let Notice be issued to the respondents, returnable on 17th March 2022. No Notice now be issued by the Registry to the respondents Nos.2 and 3 as Mr. Utkarsh Sharma, the learned A.G.P. has already entered his appearance on behalf of the respondents. Mr. Sharma is requested to take instructions in the matter and revert to us on 17th March 2022 - On the next date of hearing, notify this matter on top of the Board.

Summary

Issues:
1. Detention of goods in transit due to tax-related discrepancies.
2. Alleged clerical error in the invoice and discrepancy in the place of delivery.
3. Delay in response from the State Tax Officer regarding the representation filed by the writ applicant.

Analysis:
The High Court heard arguments from the counsel representing the writ applicant and the learned A.G.P. for the respondents regarding the detention of goods in transit. The goods were detained based on two primary grounds: the potential misclassification of the transaction as an inter-State transaction, leading to a discrepancy in the tax charged, and the inconsistency between the delivery locations mentioned in the E-way bill and the tax invoice. The matter was identified to be at the stage of GST MOV 07, indicating a GST-related issue.

The writ applicant had submitted a representation pointing out a clerical error in the invoice and explaining the discrepancy in the place of delivery by highlighting the existence of two registered places under GST - a principal place and an additional place. Despite the submission of the representation on 9th March 2022, the State Tax Officer had not taken any action or provided a decision on the matter, leading to a delay in resolving the issue.

In response to the arguments presented, the High Court issued a Notice to the respondents, returnable on 17th March 2022, to address the concerns raised regarding the detention of goods and the tax-related discrepancies. The Registry was instructed not to issue a separate notice to the respondents as the learned A.G.P. had already entered appearance on behalf of the respondents. The learned A.G.P. was requested to provide instructions on the case by the next hearing date, emphasizing the importance of resolving the matter promptly.

As the case progresses, the High Court directed that the matter be prioritized on the Board for the next hearing date, indicating the significance of expeditiously resolving the issues related to the detention of goods and the tax discrepancies to ensure a fair and timely resolution for all parties involved.