Payment of mandatory pre-deposit directed against detention order

Haresh Kumar Vs Assistant Commissioner (ST) (Madras High Court)

Madras High Court directed the petitioner to deposit maximum penalty of 200% of the tax involved in detention matter as once the mandatory pre-deposit is complied, the order has no force and all the further recovery proceedings will be subject to final outcome of the appeal.

Facts- The petitioner had transported consignment of goods vide tax invoice dated 18.04.2023, which was intercepted and detained by the first respondent.

An order of detention in Form GST MOV-06 dated 18.04.2023 was issued and therefore, the consignment that was in transit was detained even though it accompanied the E-Way Bill as is required under the provisions of the respective GST enactments and the Rules made thereunder. It appears that the respondents have detained the goods on the ground that the supplier, from whom the petitioner has purchased the goods, had wrongly passed on the Input Tax Credit and thereby entailing the petitioner to avail and utilize the same for discharging tax liability on the supplies made by the supplier.

The specific case of the petitioner is that the movement of goods by the petitioner is in accordance with the provisions of the respective GST enactments and the Rules made thereunder. If it is the case of the respondents that the supplier has wrongly passed on the input tax to the petitioner, it is for the Department to initiate appropriate proceedings to recover the same.

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