2022 (4) TMI 749 - HC - GST

Detention of goods alongwith vehicle - inter-state transaction - mismatch in the place of delivery in the E-Way bill - HELD THAT - Ms. Vaibhavi Parikh has a serious grievance to redress. She submitted that for no good reason, the goods and the conveyance were kept under detention for almost a period of 12 days and her client had to pay an amount of ₹ 65,000/- towards the demurrage charges to the transporter. The grievance of Ms. Parikh is well founded and is a matter of concern. Since the goods and the conveyance have already been released, no further adjudication of the present writ-application is required. This writ-application is accordingly disposed of.

Summary

Issues: Detention of goods in transit, GST compliance, Demurrage charges

Detention of Goods in Transit:
The case involved the detention of goods in transit, specifically HI Crome Scrap, by authorities due to discrepancies in the tax invoice and E-way bill. The detention was based on two primary grounds: the inter-State nature of the transaction requiring IGST instead of CGST and SGST, and a discrepancy in the delivery locations mentioned in the E-way bill and tax invoice. The petitioner had filed a representation pointing out clerical errors and the existence of two registered places in GST. Despite the representation, the State Tax Officer had not taken any action. The Court issued a notice to the respondents for clarification and set a returnable date for further proceedings.

GST Compliance:
The issue of GST compliance was central to the detention of goods. The authorities had detained the goods due to alleged non-compliance with GST regulations, specifically regarding the appropriate tax to be charged in inter-State transactions and discrepancies in delivery locations mentioned in the documents. The petitioner had highlighted the existence of two registered places in GST, emphasizing a clerical error in the invoice. The Court noted the representation made by the petitioner and directed the State Tax Officer to review the matter and make an appropriate decision.

Demurrage Charges:
The petitioner raised concerns regarding the demurrage charges incurred during the detention of goods. Despite the goods and conveyance being released, the petitioner had to pay a significant amount towards demurrage charges to the transporter, totaling ?65,000. The Court acknowledged the grievance raised by the petitioner, noting that the detention for almost 12 days without valid reasons was unwarranted. However, since the goods and conveyance had been released, further adjudication of the writ application was deemed unnecessary, and the case was disposed of accordingly.