Judiciary and Counsel Details
- Shekhar B. Saraf & Manjive Shukla, JJ.
- Surangama Sharma & Jagriti Vashisht for the Petitioner.
Facts of the Case
The petitioner challenged the action of the respondent authorities relating to the detention of its goods and vehicle, along with the consequential order passed under Section 129(3) of the CGST Act. The petitioner contended that it was the owner of the goods and, therefore, the goods were liable to be released in accordance with Section 129(1)(a) of the CGST Act. However, the authorities proceeded to compute tax and penalty under section 129(1)(b). It was further argued that the issue was squarely covered by earlier decisions of the Allahabad High Court, particularly in Halder Enterprises v. State of U.P., wherein it was held that in cases where the owner of goods comes forward, release must be governed by Section 129(1)(a).
High Court Held
The High Court, upon examining the record and the precedents relied upon, held that there was no justification to take a view different from that already settled in Halder Enterprises. It was observed that since the petitioner was the owner of the goods, the release ought to have been governed by Section 129(1)(a) of the CGST Act. Accordingly, the impugned order passed under Section 129(1)(b) was quashed and set aside, and the respondent authorities were directed to re-compute and release the goods in terms of Section 129(1)(a) on the basis of the valuation declared in the invoice, within the stipulated time.
List of Cases Reviewed
- Halder Enterprises v. State of U.P. [2023] 157 taxmann.com 231 (Allahabad)/[2024] 101 GST 313 (Allahabad)/[2024] 80 GSTL 357 (Allahabad) (Para 7) followed
List of Cases Referred to
- Halder Enterprises v. State of U.P. [2023] 157 taxmann.com 231 (Allahabad)/[2024] 101 GST 313 (Allahabad)/[2024] 80 GSTL 357 (Allahabad) (para 5)
- S.K. Trading Co. v. Additional Commissioner Grade 2 (Appeal) [2023] 150 taxmann.com 102 (Allahabad)/[2023] 97 GST 1110 (Allahabad)/[2023] 74 GSTL 50 (Allahabad) (para 5).
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