Case Law Details
D.K. Enterprises Vs Assistant / Deputy Commissioner (ST) (Madras High Court)
Conclusion: Since in matters of interception, seizure and detention, the GST Department did not recognise the concept of ‘working day’ and ‘holiday’, therefore, the order of detention was necessarily to be issued prior to the 7th day from date of detention/seizure of the conveyance/consignment in question, to validate both the interception and the SCN.
Held: In the instant case, assessee had sought a mandamus directing the respondents to release the goods, being a consignment of Polystardone XL-10 (consignment/consignment in question), stated to be a life-saving drug, cleared from Chennai Seaport Customs and seized/detained on 13.08.2022 at 2.15 a.m. by the Roving Squad of the Commercial Taxes Department together with the Conveyance/Lorry bearing Registration No.TN 28 AP 9239, forthwith. It was held that in the matters of interception, seizure and detention, the GST Department did not recognize the concept of ‘working day’ and ‘holiday’ and rightly so, since substantial civil rights of the parties were at stake by the aforesaid powers. Thus, the decision in regard to whether such detention was required at all and the fate of such detention must be decided expeditiously by the officials concerned. Neither assessee nor the respondents could have the luxury of reference to a holiday to delay or protract the proceedings. The acts of interception and retention, though an invasion into the rights of citizens, had been accorded statutory sanction in pursuance of the aims and objects of the Goods and Services Act. Thus, it was imperative that such intrusive acts be carried in strict compliance of the statutory provisions in this regard. Thus, and as the detention was a pre-condition/requisite for the issuance of the SCN, the order of detention was necessarily to be issued prior to the 7th day from date of detention/seizure of the conveyance/consignment in question, being, in this case, on or before the 20.08.2022, to validate both the interception and the SCN. Since the order of detention was dated 22.08.2022, it was clearly beyond the date provided and was a serious flaw, one that vitiates the proceedings for interception in full and in entirety. The procedure that had been followed by the respondents in this matter was contrary to statutory requirements as well as the instructions issued by the Commissioner.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner has sought a mandamus directing the respondents to release the goods, being a consignment of Polystardone XL-10 (consignment/consignment in question), stated to be a life-saving drug, cleared from Chennai Seaport Customs and seized/detained on 13.08.2022 at 2.15 a.m. by the Roving Squad of the Commercial Taxes Department together with the Conveyance/Lorry bearing Registration No.TN 28 AP 9239, forthwith.
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