Jaya Traders Vs Additional Commissioner Grade-2 And Another (Allahabad High Court)
Allahabad High Court dismissed the writ petition and held that seizure of goods under section 129 of the IGST/ CGST Act can be done even on the ground of under valuation. Thus, power of seizure of goods correctly exercised.
Facts- The petitioner is a proprietorship firm engaged in the business of trading of pan masala and scented tobacco. Notably, in the normal course of business, the petitioner has received an order for supply of pan masala and scented tobacco from various registered dealers situated at Delhi and in pursuance of the aforesaid order tax invoice dated 15.9.2021 was raised on which IGST, cess was charged. Since the value of the goods was less than the prescribed limit, therefore, e-way bill was not generated and through tax invoice, the goods were transported from West Bengal/ Assam to New Delhi and during its onward journey the same was transhipped at Kanpur where the same was intercepted. Thereafter, the goods were seized on the ground of under valuation.
It is mainly alleged that in the seizure proceeding under Section 129 of the Act, the authority cannot seize the goods on the ground of under valuation.
