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2018 (3) TMI 970 - HC - GSTDetention of goods - inter-state transport - detention was for the reason that the notice issued is that of the Value Added Tax period and also of undervaluation - Held that - with respect to an inter-State transport, there are no documents prescribed by the Central Government - In the circumstance of the Central Government having still not prescribed any document, prima facie there can be no detention of goods on that count. However, the adjudication proceedings would be continued and in the meanwhile the goods shall be released to the petitioner on execution of simple bond without sureties - petition disposed off.
Issues: Detention of goods for alleged non-compliance with tax regulations in an inter-State transport, applicability of IGST, legality of detention without prescribed documents
In this judgment by the Kerala High Court, the petitioner was aggrieved by the detention of granite goods purchased from Tamil Nadu and transported to Thiruvananthapuram for building a residential house. The detention was due to alleged undervaluation and non-compliance with Value Added Tax regulations, demanding CGST and SGST. The petitioner argued that only IGST should be levied for inter-State transport, as evidenced by Exhibit P3. The petitioner contended that the notice issued by the dealer in Tamil Nadu was faulty and that the goods were not for re-sale but for personal use in house construction. The Government Pleader cited Rule 138 of the Kerala Goods and Services Tax Rules, 2017, which outlines the required documents for intra-State transport. Referring to a previous judgment, the Government Pleader highlighted the absence of prescribed documents by the Central Government for inter-State transport, distinguishing it from intra-State regulations. The court referenced a Single Judge's judgment emphasizing that without prescribed documents for inter-State movement by the Central Government, detention solely for non-compliance was not legally sustainable. Considering the absence of prescribed documents by the Central Government for inter-State transport, the court ordered the release of goods to the petitioner on a simple bond without sureties. Adjudication proceedings would continue, with the Intelligence Officer verifying the house construction and informing relevant officers of any defects in the invoice for potential actions. The court disposed of the writ petition, directing the respondents to release the goods on a simple bond without sureties, pending further proceedings.
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