9911796707
TMI Blog2022 (1) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... ves service of notice of rule for and on behalf of the respondents. 2. The challenge in the present writ application is to the confiscation notice dated 4th December 2021 issued by the Tax Commissioner (Enforcement) Division - 1, Ahmedabad, in exercise of powers conferred under Section 130 of the Central Goods and Services Tax Act, 2017 (for short, "the CGST Act") read with the relevant provisions of the Integrated Goods and Services Tax Act, 2017 (for short, "the IGST Act"). The petitioner has also prayed for direction of issuance of a writ of mandamus to forthwith release the goods and vehicle without demanding any security. 3. The relevant facts which emerges from the record are reproduced as under: 4. The petitioner No.1 is a seller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent direction than the direction of destination or way to the destination. So it is clear that the goods was not moving to the place destined for. Hence it appears that the goods is being transported with intention to evade tax. (ii) The value of goods being transported is shown Rs. 286/- which is to low compared to its Real Market Value i.e. 330/-." 7. Being aggrieved by the aforesaid action of the respondent No.3, the petitioners are here before this Court with the present writ application. 8. Considering the submissions made by the learned advocate appearing for the petitioners, this Court has issued notice vide order dated 22nd December 2021. The same reads thus: "1. Petitioner is before this Court seeking to challenge the act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the consignment is impermissible, merely because the driver has opted for different route. He has also relied on the decision in the case of K.P. Sugandh Ltd. vs. State of Chhattisgarh, 2020(38) G.S.T.L. 317(Chattisgarh) on the ground that the Court has not held the detention of vehicle and the seizure of goods sustainable merely because there was an undervaluation, by holding that it is for the department to initiate the appropriate separate proceedings with regard to the alleged undervaluation and that itself cannot furnish a ground for detention of vehicle. It is urged that all aspects have been placed by way of objection, which has not been considered. 3. The petitioner has shown inclination to pay tax and penalty. Let the request be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RP, as such cannot be a ground on which the product or the vehicle could be seized or detained. If at all if this, according to the respondents, is contrary to the law, the authorities are supposed to draw an appropriate proceeding under the law. If at all what the State counsel has submitted is to be accepted, even then it would be only a case of an alleged sale of a product at a lower costs than the MRP. The Inspecting Authorities for the alleged discrepancy could have only intimated the Assessing Authority for initiating appropriate proceedings. What is more relevant to take note of is the fact that the details in the invoice bill as well as in the e-way bill matched the products found in the vehicle at the time of inspection except for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound with regard to the goods being transported to be undervalue is concerned, no material has been placed on record. Even otherwise, as held by this Court as well as other High Courts, it is a settled legal position that undervaluation cannot be a ground for seizure of goods in transit by the inspecting authority. In the instant case, there is no such indication. 14. In the result, the present writ application succeeds and is hereby allowed. The confiscation proceedings initiated by the respondents are hereby quashed and set aside. The vehicle as well as the goods shall be released at the earliest and handed over to the writ applicants. 15. We clarify that we have quashed the entire confiscation proceedings keeping in mind two things: fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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