2021 (12) TMI 324 - HC - GST

Detention of goods alongwith vehicle - proper invoice or E-way bill not accompanied with the goods - Section 129(3) of the Central Goods and Services Tax Act, 2017 and Tamil Nadu Goods and Services Tax Act, 2017 - HELD THAT - Considering the fact that the vehicle has been detained since 13.10.2021, this Writ Petition is disposed by directing the petitioner to pay the disputed tax proposed in the notice and to pay 50% of the proposed penalty within a period of two weeks from the date of receipt of a copy of this order. If such amount is paid, the respondents shall release the goods vehicle to the petitioner. The petitioner is given liberty to workout the remedy on merits before the Appellate Commissioner under Section 107 of the CGST Act, 2017 and TNGST Act, 2017 who shall consider the same on merits - Petition dismissed.

Summary

Issues:
Challenge to impugned order detaining goods carrier vehicle for lack of proper invoice or E-way bill; Recovery of tax and penalty under CGST Act, 2017 and TNGST Act, 2017; Failure to attend personal hearing leading to detention order; Availability of alternate remedy through appeal before Appellate Commissioner; Disposal of Writ Petition directing payment of disputed tax and penalty.

Analysis:
The petitioner challenged the order detaining their goods carrier vehicle due to the absence of a proper invoice or E-way bill. A notice under Section 129(3) of the CGST Act, 2017 and TNGST Act, 2017 was issued, calling for a justification for recovering a specified sum and imposing a penalty. Despite a scheduled personal hearing, the petitioner failed to attend, resulting in the issuance of a detention order on the same day. The petitioner expressed willingness to pay the tax amount. The respondents, represented by the Government Advocate, argued that the petitioner had an alternative recourse through an appeal before the Appellate Commissioner under Section 107 of the mentioned Acts.

The Court acknowledged the need for further adjudication by the appropriate authority. Considering the detention period of the vehicle since 13.10.2021, the Writ Petition was disposed of by instructing the petitioner to pay the disputed tax mentioned in the notice and 50% of the proposed penalty within two weeks from receiving a copy of the order. Upon payment, the respondents were directed to release the goods vehicle to the petitioner. The petitioner was granted the liberty to pursue remedies on merit before the Appellate Commissioner under Section 107 of the CGST Act, 2017 and TNGST Act, 2017, with the expectation of a thorough consideration. No costs were awarded, and the connected Writ Miscellaneous Petition was closed.