Case Law Details
Tiwari Furniture Vs State of West Bengal And Ors. (Calcutta High Court)
Introduction: In the case of Tiwari Furniture Vs State of West Bengal, the Calcutta High Court examined a writ petition challenging detention and subsequent proceedings under Section 129 of the West Bengal Goods and Services Tax (WBGST) Act. The petitioner contested the detention, asserting that the tax under dispute had already been paid, and there was compliance with Rule 138A of the WBGST Rules.
Detailed Analysis: The petitioner had purchased M S scrap from a supplier in Assam, with all requisite tax payments made by the seller. Despite having valid documents, the goods were intercepted during transportation to West Bengal. The detention was based on the absence of the consigner’s address during inspection. The petitioner, having no choice, paid the penalty to release the goods and filed a writ petition challenging the detention and seeking a refund.
The court considered the petitioner’s argument that invoking Section 129(3) of the CGST Act requires an intention to evade tax, which was not applicable in this case as the tax was already paid. The judgment cited precedents emphasizing the necessity of intent to evade tax for invoking Section 129(3). Additionally, compliance with Rule 138A, ensuring the presence of required documents during transportation, was highlighted.
It was undisputed that the tax liability had been fulfilled by the seller, negating any possibility of tax evasion. Considering these factors and the settled legal position, the court concluded that there was no need to pursue the matter through appellate authority. Thus, the writ petition was allowed, and the impugned proceedings, including the detention order and penalty, were set aside. The respondents were directed to refund the amount recovered from the petitioner.
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