Case Law Details
K. P. Sugandh Ltd. Vs State Of Chhattisgarh (Chhatisgarh High Court)
Conclusion: Under valuation of a good in the invoice could not be a ground for detention of the goods and vehicle for a proceeding to be drawn under Section 129 of the Central Goods and Service Tax Act, 2017 read with Rule 138 of the Central Goods and Service Tax Rules, 2017.
Held: Assessee-company was the manufacturers of ‘Pan Masala and Tobacco Products’. It dispatched goods both Pan Masala and Tobacco Products to its customer vide Maxi Truck Plus belonging to the transporter Shyam Transport Company. While the goods were being transported, assessee had issued with a tax invoice as well as eway bill generated and handed the same to the Incharge of the conveyance. When the said vehicle/conveyance left for Raipur, the vehicle was intercepted by the officials of the Department and asked for the details of the consignment. Inspite of the Incharge of the conveyance producing the necessary invoice bill and the e-way bill, the authorities seized the vehicle and the goods on the grounds of there being discrepancies in the valuation of the goods and thereafter detained the vehicle and the goods. Immediately, thereafter assessee moved an application for release of the vehicle. Authorities had passed the impugned order whereby they had assessed the tax payable on the goods as also the penalty applicable on the said assessment made for the purpose of releasing of the goods and the vehicle. The issue raised in this case was whether the goods undervaluation of goods in the invoice could be the ground for the detention of goods under Section 129 of the Central Goods and Service Tax (CGST) Act, 2017 or not? It was held that under valuation of a good in the invoice could not be a ground for detention of the goods and vehicle for a proceeding to be drawn under Section 129 of the Central Goods and Service Tax Act, 2017 read with Rule 138 of the Central Goods and Service Tax Rules, 2017. Therefore, the order passed under Section 129 and the order of demand of tax and penalty both being unsustainable deserved to be and was accordingly set-aside/quashed. Authorities were forthwith directed to release the goods belonging to assessee based on the invoice bill as well as the e-way bill. Quashment of the impugned order by itself would not preclude the State Authorities from initiating appropriate proceedings against assessee for the alleged act of under valuation of the goods as compared to the MRP on the product in accordance with law.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
Since the facts and grounds raised in both these writ petitions and the dates also being identical and the impugned orders also being same, both these writ petitions are being decided by this common judgment.
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Mera pass ek under valauation gstcase hai 10-15cr ka plz contact me