A.Z. Enterprises Vs Deputy Assistant Commissioner- DAC (St) (Andera Pradesh High Court)
In the case of A.Z. Enterprises vs. Deputy Assistant Commissioner (DAC) of State Taxes, Andhra Pradesh High Court, the writ petition was filed under Article 226 of the Constitution of India. The petitioner, A.Z. Enterprises, sought a writ of Mandamus challenging the actions of Respondent Nos. 1 and 2 (officials of the Commercial Taxes department) in detaining their goods and vehicle without following due process under Section 129 of the Central Goods and Services Tax (CGST) Act, 2017. Furthermore, they objected to the auction notice issued under Section 79 of the CGST Act, 2017, during the pendency of an appeal before Respondent No. 3.
Facts of the Case
A.Z. Enterprises had purchased iron scrap from an unregistered dealer in Nellore and subsequently sold it to M/s. Agarwal Foundries Private Limited in Naidupeta, supported by valid invoices, way bills, and transport documents. While the goods were in transit from Nellore to Naidupeta, they were intercepted at Venkatachalam Toll Plaza by Respondent No. 1. The Commercial Taxes department invoked Section 130 of the CGST Act, 2017, ordering confiscation of the goods and scheduling an auction for 31st May 2024. The petitioner argued that this action bypassed the mandatory detention procedures under Section 129 of the CGST Act, 2017.
