Home Case Index All Cases GST GST + HC GST - 2024 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 187 - HC - GSTDetention of goods and Levy of penalty on the ground of under valuation - There is no dispute that the invoice, e-way bill and all other relevant documents were accompanied with the goods. Furthermore, there was no mismatch in the description of the goods with the documents. - HELD THAT:- The only ground for detention of the goods was that the valuation of the goods as per the invoice was not correct. This is not a valid ground for detaining the goods as the officer concerned was not competent to carry out such detention. In the event of under valuation, appropriate notice under Sections 73 or 74 of the Uttar Pradesh Goods and Service Tax Act, 2017 is required to be issued as per the procedure provided therein. If the Court holds such a detention to be valid, it would be open to the authorities to carry out detention on their whims and fancies. The detention of the goods in such a scenario is not envisaged under the Act and the officers have not been vested with such a power to detain the goods and thereafter impose penalty under Section 129 of the Act. Specific provisions have been provided for detection of under valuation and the GST officials have to adhere to the same. It is to be noted that only after issuance of notice under Sections 73 or 74 of the Act, if the goods are found under valued, penalty can be imposed. Accordingly, imposition of penalty under Section 129 of the Act on the speculation that the goods are under valued cannot be allowed - impugned orders dated December 20, 2020 and September 17, 2021 are quashed and set-aside - Petition allowed.
|