Goods detained under CGST/SGST Act to be released on simple bond without sureties

Sameer Mat Industries & Kaleel Mat Industries v State of Kerala (Kerala High Court)

Detention notice under the provisions of CGST/SGST Act, 2017 cannot be issued in case of inter-State movement of goods, as it is not under the jurisdiction of the detaining officer

Authorities appointed by the State have been empowered to implement the provisions of the enactments which regulates the inter-State as also the intra-State trade. However the specific power invoked in issuing the impugned notice is under the CGST/SGST which is applicable only to the intra-state movement of goods. Admittedly the petitioner has consigned the goods from Tamil Nadu and was transporting it to the 3rd respondent at Pattambi. The 3rd respondent also appears and submits that they are ready to accept the consignment. The issue of mis-classification and under valuation has to be gone into by the respective assessing officers and not by the detaining officer. In such circumstances, this Court is not inclined to permit the further detention of the goods. The petitioners shall be permitted release of the goods on the execution of simple bond without sureties as expeditiously as possible. The detaining officer shall inform the assessing officer of the 3rd respondent who would be entitled to take appropriate proceedings at the time of assessment of the 3rd respondent. The assessing officer of the petitioners at Tamil Nadu would also be intimated, the details of whom shall be furnished by the petitioners before release of the goods.