S N Trading Co. & Anr. Vs Union of India & Ors. (Calcutta High Court)
The Calcutta High Court dismissed a writ petition challenging an order passed under Section 129(3) of the CGST Act, 2017 relating to the detention of a consignment of Assam dried areca nuts during transit.
The petitioner had dispatched 350 bags of Assam dried areca nuts weighing 24,500 kg to a consignee in Kanpur. The goods were accompanied by all required documents, including the e-way bill, e-invoice, and consignment note. The taxable value declared in the invoices was Rs. 32,52,500, based on a rate of Rs. 145 per kg.
The vehicle carrying the goods was intercepted by officers of the Headquarters Anti-Evasion Unit of the Siliguri Commissionerate on 16.05.2025. Following physical inspection and weighment, a report dated 17.05.2025 recorded the gross weight of the loaded vehicle at 36.310 MT and the unladen weight at 11.390 MT. Based on these figures, the authorities calculated the net weight of the goods at 26.920 MT, indicating an excess quantity of 420 kg compared to the quantity declared in the documents.
A detention order was issued on 19.05.2025, followed by a notice under Section 129(3) of the CGST Act on 26.05.2025. After considering the petitioner’s reply, the Assistant Commissioner passed a final order on 02.06.2025. The authority determined the value of the goods at Rs. 240 per kg instead of the declared value of Rs. 145 per kg and imposed liability accordingly.
