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TMI Blog2018 (1) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner transported the, batteries covered by Ext.P1 GST tax invoice intended for tower locations referred to above on the strength of delivery chalans. The goods transported by the petitioner were intercepted by the first respondent and the petitioner was issued Ext.P3 notice of detention under Section 129 of the CGST and SGST Acts. stating that the movement of goods was not declared by the petitioner as provided for under Rules 55 and 138 of the Kerala Goods and Services Tax Rules (the State GST Rules). As per Ext.P3 notice, the first respondent has called upon the petitioner to pay a sum of Rs. 57,192/- towards CGST and SGST and equal amount towards penalty, treating the transaction as a taxable supply. Sub rule (3) of Rule 55 of the State GST Rules provides that where goods are being transported on a delivery chalan in lieu of invoice, the same shall be declared as specified in Rule 138 of the said Rules. Rule 138 of the State GST Rules provides that persons in charge of conveyances carrying consignment of goods, where the goods are transported on a delivery chalan, shall carry along with the goods a declaration in Form KER-1 uploaded before such transportation of goods i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Per contra, the learned Government Pleader submitted that going by the provisions contained in Section 129, the goods can be detained for violation of the provisions contained in the CGST and SGST Acts as also the rules made there under. According to the learned Government Pleader, insofar as it is admitted by the petitioner that the documents accompanied the goods did not include the declaration made in Form KER-1, it cannot be contended that the detention is illegal. In other words, according to the learned Government Pleader, goods can be detained even in transactions which do not involve taxable supply. 6. In order to resolve the issues, it is necessary to understand the scheme of the CGST and SGST Acts. GST is a destination based tax on consumption of goods and services. The taxable event under the GST regime is the supply of goods or services or both. Section 2(107) of the CGST and SGST Acts which are identical, defines "taxable person" as a person who is registered or liable to be registered under the said statutes. Section 2(108) of the CGST and SGST Acts which are identical, defines "taxable supply" as a supply of goods or services or both which is chargeable to goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods- (a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or (b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal. 4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business. In the light of the aforesaid provisions, there cannot be any doubt that when a taxable person transports the goods procured by them for own use to the site where the goods are to be consumed, the transaction would not involve any consideration. Such transactions would not fall within the scope of the Schedule 1 as well. As rightly pointed out by the learned counsel for the petitioner, it is seen from Ext.P3 notice that the first respondent does not dispute the genuineness of the delivery chalan. So long as the first respondent does not dispute the genuineness of the delivery chalan issued by the petitioner for transporting the goods involved, it has to be taken that the detention of the goods by the first respondent is solely for the reason that the goods did not accompany the documents req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owner of the goods does not come forward for payment of such tax and penalty; (c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. (3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c). (4) No tax, interest or penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard. (5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded. (6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided In sub-section ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -section (1), shall, in addition, be liable to any tax, penalty and charges payable in respect of such goods or conveyance. (4) No order for confiscation of goods or conveyance or for imposition of penalty shall be issued without giving the person an opportunity of being heard. (5) Where any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government. (6) The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession. (7) The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Government. A combined reading of Sections 129 and 130, especially the provision contained in sub section (6) of Section 129 indicates that the detention of the goods is contemplated under the statutes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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