2018 (11) TMI 888 - HC - GST

Detention of goods - goods detained for the reason that the petitioner has tried to hide the correct identity of the consignee - Held that - In view of the bilty and invoices, prima-facie there cannot be any controversy with regard to the identity of the person or dealer to whom the goods meant for delivery. The detained goods and the vehicle shall be released forthwith, on the petitioner furnishing security other than cash and bank guarantee and the indemnity bond of the amount of the proposed tax and the penalty, as the petitioner is the owner of the goods, as per notice under Section 129(3) read with Section 129(1)(A) of U.P.G.S.T. Act.

Summary

Issues: Detention of goods for alleged concealment of consignee's identity, legality of detention under Section 129(1) of U.P.G.S.T. Act

Detention of Goods for Concealment of Consignee's Identity:
The petitioner's goods moving from Chhattisgarh to Hamirpur were detained on suspicion of concealing the consignee's identity. The petitioner, a dealer in Aligarh, claimed to have purchased the goods from Chhattisgarh for delivery to the consignee in Hamirpur. The bilty and invoices presented by the petitioner clearly indicated the consignor, consignee, and the intended recipient of the goods, thereby establishing the identity of the parties involved in the transaction. The argument put forth by the petitioner's counsel emphasized the transparency of the transaction, supported by documentary evidence, which negated any ambiguity regarding the consignee's identity.

Legality of Detention under Section 129(1) of U.P.G.S.T. Act:
The detention order lacked specificity in terms of citing the provisions of the Act or Rules allegedly violated by the petitioner. The petitioner's counsel contended that under Section 129(1) of the U.P.G.S.T. Act, goods and vehicles can only be seized if there is a contravention of the statutory provisions. Since the detention order did not explicitly mention any such violation, the legality of the detention was called into question. The court, after hearing arguments from both sides, granted three weeks to the respondents to file a counter affidavit and an additional week for the petitioner to file a rejoinder affidavit. Pending further proceedings, the court directed the immediate release of the detained goods and vehicle upon the petitioner providing security other than cash and bank guarantee, along with an indemnity bond covering the proposed tax and penalty amounts as per the notice under Section 129(3) read with Section 129(1)(A) of the U.P.G.S.T. Act.

This judgment from the Allahabad High Court addressed the issues of detaining goods due to alleged concealment of consignee's identity and the legality of such detention under the U.P.G.S.T. Act. The court emphasized the importance of transparency in commercial transactions and the necessity for detention orders to specify the statutory violations justifying the seizure of goods and vehicles.