Case Law Details
Mane Kancor Ingredients Pvt. Ltd. Vs State Tax Officer (FAC) (Madras High Court)
Goods seized for not accompanying delivery challan: HC directs release on production of relevant delivery challans
In a significant ruling, the Madras High Court has directed the release of goods seized from Mane Kancor Ingredients Pvt. Ltd. The case involves the detention of goods and imposition of penalties due to the absence of delivery challans during transportation. This decision underscores the importance of adhering to documentation requirements under the GST regime and clarifies the conditions under which goods can be transported without accompanying delivery challans.
Background
Mane Kancor Ingredients Pvt. Ltd., a prominent supplier of natural food ingredient solutions, encountered legal challenges when their goods were detained by the State Tax Officer (FAC). The detention occurred on 21.05.2024, while transporting 16 metric tonnes of ‘Oleoresin Paprika Crude’ from Chennai Sea Customs Port to their Karnataka unit. The impugned order, dated 27.05.2024, cited the absence of delivery challans as the primary reason for detention and imposed penalties on the company.
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