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2021 (10) TMI 835 - HC - GSTDetention of goods - adjudication of ownership of goods - Section 129 of the Central Goods and Services Tax Act, 2017 - HELD THAT:- The department can claim at the most that there was a hidden transaction between the 5th respondent and the petitioner due to which the State lost the tax due to it. The transaction during which interception of the goods were carried out was between the petitioner and the consignee in Ext.P2. If the department's assumption is acceptable, it could be assumed that there was an evasion of tax in the transaction between the 5th respondent and petitioner. However that transaction could be only prior to Ext.P2 invoice. No doubt it is for that alleged hidden transaction that evasion of tax was suspected. Be that as it may after Ext.P2 invoice was generated, there is no case that there is any suspected evasion of tax since IGST is already reflected in Ext.P2. Thus from the time of generation of Ext.P2, petitioner is the owner of the goods as he is the consignor in Ext.P2. The mandate of Section 130 will be defeated if the goods are not released to the person who holds the invoice at the time of interception when the entire penalty, fine and tax are tendered - Since on 17.08.2021, petitioner had tendered, by Ext.P16, the entire fine, penalty and tax in lieu of confiscation, there is no justification for the 4th respondent to retain or detain goods and the vehicle any further. For filing counter affidavit in the writ petition, post on 20.09.2021.
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