Md. Yusuf Vs State Tax Officer (Calcutta High Court)
Teak Sawn Timber is ‘Natural Produce’: Calcutta HC quashes GST Detention Order due to Discrepancy in mentioning ‘Nature of Goods’ in E-Way Bill
The Hon’ble Calcutta High Court in Md. Yusuf v. State Tax Officer, Bureau of Investigation [MAT 1426 of 2022 with IA No. CAN 1 of 2022 dated September 28, 2022] has held that the assessee cannot approach the High Court when the first remedy is still available. Directed the assessee to approach the State Tax Authority who passed the detention order and seek to revoke it by answering all the allegations.
Facts:
This appeal has been filed by Md. Yusuf (“the Appellant”) challenging the order of detention dated August 10, 2022 (“the Detention Order”) passed by the State Tax Authority (“the Respondent”) under Section 129 of Central Goods and Services Tax Act, 2017 (“the CGST Act”) for alleged mismatch between the goods in movement and documents tendered and that the Appellant had obtained GST Registration by means of fraudulent documentation. Further, it was alleged that the tax invoices generated in support of movement of the goods are fabricated and has no legal basis and the teak sawn timber was transported without valid documents in a concealed manner in contravention of Section 68 read with Section 138A of the CGST Act.
Earlier, the Appellant, filed a writ petition before the Hon’ble Calcutta High Court in WPA 18885 of 2022 dated August 30, 2022 wherein the petition was dismissed on the ground that the registration of the “Teak Sawn Timber” was not tallying with the declaration made in the E-way bill and invoices and further there is no existence of consignor at his registered place of business.
Being aggrieved, this appeal has been filed by the Appellant.
The Appellant contended that he is the owner of the goods and had a transit permit issued by the Forest Department along with invoices and E-way bill and that the Appellant has got sufficient material to show that GST Registration was obtained by placing valid documents.
Issue:
Whether the goods were erroneously detained by the Respondent?
Held:
The Hon’ble Calcutta High Court in MAT 1426 of 2022 with IA No. CAN 1 of 2022 held as under:
