2023 (7) TMI 1224 - HC - GST

Violation of principles of natural justice - petitioner would submit that the impugned order is a verbatim repetition of the cyclostyle notice issued in Form GST MOV-09 and suffers from the vice of non-application of mind - HELD THAT - No prejudice will be caused to the petitioner, if the petitioner is directed to workout its remedy before the Appellate Authority under the respective GST enactments as there are several disputed questions that arise for consideration related to the value, even if the value given in the invoices produced by the petitioner are considered. There is a shadow of doubt, which needs to be cleared. Therefore, it would ideal for the petitioner to workout remedy before the appellate authority/appellate forum. Petition dismissed - However, liberty is given to the petitioner to file a statutory appeal within a period of thirty days from the date of receipt of a copy of this order. If such appeal is filed by the petitioner within such time, the appellate authority shall dispose the appeal, as expeditiously as possible, preferably, within a period of three months from the date of receipt of a copy of this order.

Summary

Issues involved:
The petitioner challenges an order passed under Section 129(3) of the Central Goods and Services Tax (CGST) Act, 2017 regarding the detention of consignments of Tobacco Leaves purchased from the Department of Agricultural Marketing and Agri Business.

Details of the Judgment:

1. Detention of Consignments:
The petitioner purchased two consignments of Tobacco Leaves and transported them to its Branch Office. The consignments were detained en route, leading to the imposition of penalty and duty by the respondent.

2. Lack of Necessary Documents:
The petitioner claimed that despite the driver not having the required invoices, no e-way bill was necessary as the value of the consignments was below the threshold. The petitioner argued that the impugned order was a mere repetition of a notice and lacked proper consideration.

3. Disputed Value of Tobacco Leaves:
The respondent contended that there was a significant suppression of value, alleging that the actual value of the Tobacco Leaves was higher than claimed by the petitioner. This discrepancy in value was a key point of contention between the parties.

Judgment Analysis:
The court acknowledged the arguments presented by both parties but ultimately directed the petitioner to seek remedy before the Appellate Authority under the GST enactments due to the disputed questions regarding the value of the consignments. The court dismissed the writ petition, granting the petitioner the liberty to file a statutory appeal within thirty days. The court emphasized the need for expeditious resolution of the appeal, ideally within three months. Additionally, the court mentioned that if the petitioner succeeds, the deposited amount for releasing the goods should be adjusted according to the law.

Conclusion:
The writ petition was dismissed with the mentioned observations and liberty to file a statutory appeal within the stipulated timeframe. No costs were awarded, and the connected Writ Miscellaneous Petitions were closed as a consequence of the judgment.