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2020 (11) TMI 110 - HC - GSTDetention of goods alongwith vehicle - non-registration of the person making the interstate supply - purchase bill issued by the petitioner - valid document for the purposes of supporting an interstate taxable supply or not - petitioner contends that, while the consignor agriculturist is not required to take any registration in view of the express provisions of Section 23(1)(b) of the Act, he is also not required to take a compulsory registration under Section 24, since the non-obstante clause in Section 24 does not apply to agriculturists mentioned under Section 23 - HELD THAT:- In the instant case, the declaration by the petitioner in the e-way bill, as also before the respondent authorities, has consistently been that the purchase was effected from an agriculturist in Karnataka who, going by the provisions of Section 23 of the GST Act, is not required to get himself registered for the sale of agricultural produce. Even assuming that the respondents dispute the said contention of the petitioner, the remedy available to them is to proceed against the agriculturist in question, for not taking the registration as required under the applicable provisions of the Act. The non-registration of the consignor, or the alleged mis-classification of the goods under transportation, cannot be a ground for detention under Section 129 of the GST Act. In the instant case, if this Court ignores the classification issue as also the non-registration issue which are not relevant for the purposes of Section 129 of the Act, then it is the provisions of Section 129(1)(b) that would apply for the purposes of determining the deposit that the petitioner would have to make for obtaining a clearance of the goods and the vehicle - the petitioner would have to pay the lesser of an amount equal to 5% of the value of the goods or ₹ 25,000/-. In the instant case, the value of the goods being approximately ₹ 10 lakhs, the lesser amount would be ₹ 25,000/- which amount the petitioner would necessarily have to pay to obtain a release of the goods and the vehicle. The writ petition is disposed off by directing the respondents to release the goods and the vehicle to the petitioner on the petitioner paying an amount of ₹ 25,000/-, as required in terms of Section 129(1)(b) read with Section 129(3) of the GST Act.
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