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TMI Blog2024 (7) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... rt as well as other High Courts, it is a settled legal position that undervaluation cannot be a ground for seizure of goods in transit by the inspecting authority. In the instant case, there is no such indication. This Appeal being devoid of merits is liable to be and accordingly dismissed, costs having been made easy - Appeal dismissed. - HON'BLE MR JUSTICE KRISHNA S DIXIT AND HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR For the Appellants : (By Sri. Aditya Vikram Bhat., AGA.,) For the Respondent (By Sri. K J Kamath., Advocate) JUDGMENT KRISHNA S DIXIT. J., This intra-Court Appeal seeks to call in question a learned Single Judge s order dated 23.06.2022 whereby respondent s W.P. No. 7226/2022 (T-RES) having been favoured, the obligation to pay tax penalty has been quashed coupled with a direction to release the vehicle in question. 2. Learned AGA appearing for the Appellants vehemently argues that the carrier of subject goods had furnished the movement particulars of the vehicle in advance in terms of lex mercatoria to the Department; goods carried in the conveyance originated from various consigners from Mumbai, consignees being in several places in Bengaluru city limits; h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conveyance was not moving toward the destination points as mentioned in the documents. And, present movement of goods and the conveyance are to be considered as moving without proper documents or with defective documents as prescribed under the provisions of the GST Act and Rules, 2017. Both non-production of the required documents for the goods in transit or production of defective documents for verification at the time of check, leads to a clear contravention of the provisions of the GST Act and Rules, which attracts the levy of tax and penalty as provided under the provisions of sub-section (1) of Section 129 of the GST Act, 2017. (c) In view of the above, the CTO passed an order u/s 129 (3) of the 2017 Act confirming the tax liability of Rs. 3,25,423/- coupled with a penalty of Rs. 21,41,239/- and directed the respondent to make the payment immediately. The respondent carried the matter in appeal at the departmental level and the same came to be negatived vide order dated 10.03.2022. Against these orders, respondent filed W.P. No. 7226/2022 (T-RES) and the same having been favoured by the learned Single Judge, this appeal by the State is placed at our hands. 5. Having heard the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the firearm the vehicle are regulated by law in certain aspects and that affects the scope of right to movement otherwise vastly availing to citizens. That is how Article 19 (5) i.e., restriction by law is conceived. Thus, a trader cannot claim unfettered right of movement whilst carrying goods that are regulated by law. However, in the absence of such law being shown, fetter cannot be imposed. c) This case involves also the fundamental right to trade business guaranteed u/a 19 (1) (g) read with Article 301 of the Constitution. Therefore, it will have elements of right to movement, as well. It is open to a trader to take goods to the destination point in whichever route he opts, unless the law otherwise requires, destination point being intact. Such a right needs to be recognized as of necessity to trade or business. Mr. Hamilton, a co-author of Federalist Papers (1787-88) says the following about importance of free movement to commerce: An unrestrained intercourse between the States themselves will advance the trade of each by an interchange of their respective productions, not only for the supply of reciprocal wants at home, but for exportation to foreign markets. The veins of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... niable. In fact, that was his admission and he gave his own reason for that which was not believed by the authorities as true. However, the question is whether law mandates conveyance in a particular route and prohibits alteration of travel route qua the one impressed in the consignment documents. We have not been shown any such law, rule or ruling. [*Corrected vide chamber order dated 27.06.2024.] (f) What is required by law is the furnishing of consignment documents and specified particulars of consignor, consignee, goods, route maps destinations. Requirement of furnishing particulars of route map, etc., is one thing, compulsive adherence to the impressed route is another. There is law with regard to the former, is true; but latter is non liquet i.e., an area where there is no binding rule. When law does not require giving of reasons for changing the direction or route, whether the reason offered by the driver for opting another route is true or false, pales into insignificance. However, this does not mean a driver of conveyance can lie with impunity, the motto Satyameva Jayate (Truth alone succeeds) having been inscribed in our national emblem i.e., Ashoka Sthamba. We are told a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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