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2018 (11) TMI 1503 - HC - GSTJurisdiction - scope of adjudication proceedings - detention of goods - Ground Betel Nuts (Arecanuts) - dispute with regard to rate of tax and classification of the goods - case of petitioner is that dispute about the rate of tax is not a matter for adjudication in a proceeding under Section 68 or 129 of the GST Act. Held that:- The classification or the alleged misbranding of the product-even the alleged tax variation, not evasion though-cannot be considered here - the writ’s province is restricted. It is, indeed, for the assessing authorities to adjudicate on the issue. The case falls within the adjudicatory ambit of both J.K. Synthetics Limited and RAMS VERSUS SALES TAX OFFICER - in J.K. Synthetics Limited [1994 (5) TMI 233 - SUPREME COURT], where it was finally held that if the assessee pays the tax, which according to him is due based on the information supplied in his return, there would be no default on his part to meet his statutory obligation. Therefore, it would be difficult to hold that the 'tax payable' by him 'is not paid' and that he is liable for consequences. In the case of Rams [1993 (3) TMI 324 - KERALA HIGH COURT], it was held that the inspecting authority may entertain a suspicion that there is an attempt to evade tax. But if the records he seizes truly reflect the transaction and the assessee's explanation accords with his past conduct, for example, the returns he has filed earlier, the detention is not the answer. In the words of Rams, at best the inspecting authority can alert the assessing authority to initiate the proceedings “for assessment of any alleged sale, at which the petitioner will have all his opportunities to put forward his pleas on law and on fact.” Indeed, emphatic is the enunciation of law in Rams that the process of detention of the goods cannot be resorted to when the dispute is bona fide, especially, concerning the exigibility of tax and, more particularly, the rate of that tax. Thus, it can be concluded that the Ext.P11 is arbitrary and unsustainable, and is accordingly set aside - the Assistant State Tax Officer will release the goods forthwith - petition allowed.
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