Under valuation of goods in invoice cannot be a ground for detention of the goods and Vehicle

By:

K.P. Sugandh Ltd. v. State of Chhattisgarh & Ors. [WPT No. 36 of 2020, WPT No. 49 of 2020 dated March 16, 2020]

This petition was filed before the Hon’ble Chhattisgarh High Court, against the order passed by the Revenue Department, for release of the seized vehicle carrying goods from the manufacturing centers to the dealer with a tax invoice and an e-way bill, belonging to the assessee, a manufacturer of pan masala and tobacco products, on the grounds of discrepancies in the valuation of the goods.

The Hon’ble Chhattisgarh High Court observed that, under valuation of a goods in the invoice cannot be a ground for detention of the goods and vehicle for a proceeding to be drawn under Section 129 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) read with Rule 138 of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”).

Further, held that, proceedings of detention and seizure of the goods and the vehicle by the respondents is without any authority of law. Set aside the order passed under Section 129 and the order of demand of tax and penalty both being unsustainable and directed the Revenue Department to release the goods. 

Online GST Course by Bimal Jain

Recorded: Certified Advanced GST Course

Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.

For Registration:- https://cutt.ly/hxjl5Cu

Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)

Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)

For Registration:- https://cutt.ly/pvw7mzl

For more details, Call: +91-11-42427056, E-mail: intern@a2ztaxcorp.com, Web: www.a2ztaxcorp.in

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.

CLOSE
CLOSE