In the case of a detention order u/s 129(3) of the Central Goods ...

Detention Order Challenged for Export Goods; Court Requires Verification for Zero-Rated Tax Status via GSTR-1 Submission.

October 14, 2024

Case Laws     GST     HC

In the case of a detention order u/s 129(3) of the Central Goods and Services Tax Act, 2017, the petitioner challenged the order on the grounds that the goods were meant for export and thus qualified for Zero Rate Sale, rendering any levy of tax or penalty without jurisdiction. The High Court held that considering the peculiar facts of the case, where the goods relate to export treated as zero rate u/s 16 of the IGST Act, the petitioner shall submit a copy of GSTR-1 before the appropriate respondent. If GSTR-1 reveals the transaction as a zero rate export sale, integrated taxes ought to be paid or the goods must be exported under Bond or Letter of Undertaking in accordance with Section 54 of the Act. If the petitioner can demonstrate the transaction's inclusion in GSTR-1, the goods shall be provisionally released. However, the petitioner can question the impugned proceedings dated 23.08.2024 by filing an appeal before the appropriate appellate authority u/s 107 of the Central Goods and Services Tax Act, 2017, subject to compliance with conditions like payment of pre-deposit. If such an appeal is filed, it shall be disposed of within four weeks from the date of filing. The petition was disposed of accordingly.

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