19/04/2022
The petitioner was a registered dealer and engaged in the business of selling Ancle (Sweet Supari) and Varanasi Ashik (Betel Nut Product). It transported goods along with tax invoices & e-way bill which were intercepted by the department. For one consignment of three bags, tax invoice was handed over to the transporter but by mistake it left it behind and e-way bill was not generated as value was less than Rs. 50,000. The department detained whole consignment and it filed writ petition against the same.
The Honorable High Court observed that as per rule 138 of CGST Rules, if the value of the transaction is more than Rs. 50,000/- then only e-way bill is required. In the instant case, the department failed to show any authority or provision of the Act in support thereof for detaining goods. The departmental authorities had in illegal and in arbitrary manner referred the various discrepancies such as the pouches were not having batch number, packing date, expiry date, manufacturing date and referred that under the Food Safety Regulation, the said dates/details were required. But so far as the GST law is concerned, the authorities failed to record any provision for justification of the seizure of the goods in question. Therefore, it was held that department was not justified in detaining goods.
Shri Surya Traders
[2022] 137 taxmann.com 51 (Allahabad)[06-01-2022
