Goods cannot be detained merely because driver has taken a different route

Commercial Steel Company v. Assistant Commissioner of State Tax (Telangana High Court)

Detention of goods on the ground that the vehicle took a different route or reached wrong destination- The High Court observed that allegation of ‘wrong destination’ or that the driver has taken a different route is not a ground to detain the vehicle carrying the goods or levy tax or penalty. It was held that the fact that the vehicle was found at another place does not automatically lead to any presumption that there was an intention of evasion of tax. The amount collected was directed to be refunded with interest @ 6%. 

Wrongful Detention – Tax not to be collected by Coercion

Petitioner had purchased goods from JSW Karnataka and goods were destined for Hyderabad. Goods intercepted at Jeedimetla in Telangana and notice of detention alleging “wrong destination” issued under Section 129 (3) of CGST Act. Though the goods were accompanied by tax paid documents which reflected payment of IGST, demand made for payment of CGST + SGST. It is contended by the petitioner that since at that time the petitioner could not contest it on account of a marriage in the family, on 12.12.2019 at Hyderabad, and since the driver of the vehicle was pressurizing for release of the vehicle, Petitioner was forced to pay the amount mentioned in the notice.