Case Law Details
Shiv Enterprises Vs State of Punjab (Punjab and Haryana High Court)
GST authorities cannot detain goods on the ground of inadmissible ITC
The Hon’ble Punjab and Haryana High Court in M/s. Shiv Enterprises v. State of Punjab and others [CWP-18392-2021 dated February 04, 2022] held that, GST Authorities cannot detain goods in conveyance without passing appropriate orders if goods are accompanied with the documents as prescribed and cannot proceed against the taxpayer for contravention of any provision of the Central Goods and Services Tax Act, 2017 (the CGST Act). Further held that it is not the liability of the taxpayer to find out that whether or not other person in the supply chain has paid the tax and is the fundamental legal principle, that the law does not compel a man to do that which he cannot possibly perform.
Facts:
M/s. Shiv Enterprises (“the Petitioner”) is engaged in selling copper scrap. The Petitioner sold scrap to its customer and while the goods were in transit, the vehicle containing such goods were checked and were detained inspite of producing all the documents. Subsequently order for physical verification / inspection of the conveyance, goods and documents in Form MOV-02 was issued and conveyance was stationed at the office of Assistant Commissioner (“the Respondent”).
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