Detention order is to be passed by the jurisdictional assessing officer

Macmet Engineering Limited Vs Commissioner of Commercial Taxes (Madras High Court)

Held that if there is bona fide dispute, it is only the jurisdictional assessing officer to decide the issue and it is not by the Roving Squad Officers.

Facts-

Five vehicles were intercepted by the State Tax Officer (Int.) Roving Squad (Addl.), Madurai, on 02.08.2022 at 03.45 pm. at Madurai – Tirunelveli Bye-pass, near Thirumangalam, Madurai. The second respondent detained the vehicle under Section 68(3) of the CGST Act read with Section 129(1) of the CGST Act and Section 20 of the IGST Act read with Section 68(3) of the CGST Act. Following the same, show cause notice dated 04.08.2022 in Form MOV 07 issued on the allegation that the vehicles carried consignments under ‘Bill to – Ship to’ concept, but the drivers were not in possession of invoices to support transport to ‘Bill to’ address in Tamil Nadu. The notice also proposed to impose penalty under Section 129(1)(b) of the CGST Act.

The petitioner contended that the jurisdictional Tax Officer would be the right person to decide the mistake and to be found whether there is loss of revenue or evasion of duty. In view of the error committed by the State Tax Officer (Intelligence), the petitioner prays that the detention orders passed by the second respondent are liable to be quashed.

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