M/s. Jeyyam Global Foods (P) Ltd. Vs Union of India (Madras High Court)
Madras High Court has directed Commissioner of commercial tax in the case of M/s. Jeyyam Global Foods (P) Ltd. Vs Union of India to instruct his officers not to detain goods / conveyances for classification disputes.
Detention of Goods / Vehicle under GST cannot extend beyond a reasonable period
Facts of the case:
The petitioner is a manufacturer of dried chick peas, gram flour, pulses and grams. They claim to purchase chick peas, dry them by heating them to a certain degree and the resultant product is known as “Dried Chick Peas”. According to the petitioner, this would have to be classified only under Chapter 0713 of HSN. The petitioner had transported the dried chick peas from Salem to Dindigul. The petitioner had not filed any E-Way bill in view of the exemption statutorily granted. While so, the consignment of the dried chick peas sent by the petitioner was intercepted by the fourth respondent on 21.12.2018. The fourth respondent seized the goods and also detained the vehicle in which the goods were being transported. The fourth respondent took the view that what was transported by the petitioner comes under the classification falling under Chapter 2106 of HSN.
