Classification & valuation of goods moving inter-state can’t be carved out by detaining officer

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Kerala HC overturns detention of goods moving interstate on ground of misclassification and undervaluation, holds that said issues can be considered by respective Assessing Officers of the States and not by Detaining Officer;

Notes that goods were consigned from Tamil Nadu and on verification, it was revealed that they were classifiable under HSN Code 3926 attracting GST at 28% while invoice taxed them at 18% under HSN Code 4601; Observes, while undisputedly, State authorities are empowered to implement provisions of enactments which regulate inter-state and intra-state trade, however, specific power invoked for issuing the notice falls under CGST/SGST Act which is applicable only to intrastate movement of goods;

Accordingly, directs Detaining Officer to inform respective Assessing Officers the details of which shall be produced by assessee before release of goods against simple bond without sureties; Clarifies that said notice shall be deemed to be one under IGST Act, while restraining to give observations on merits: Kerala HC

Citation: [TS-372-HC-2017(KER)-NT]