ISSUE INVOLVED
Validity of Writ Petition when alternate remedy is available under the provision of the applicable act
HELD THAT
Where conveyance was intercepted and order of detention under section 129(1) was passed on ground of mismatch of delivery address, since alternate remedy was available under section 107, petition was disposed directing assessee to file a statutory appeal
Case Reference : [2023] 151 taxmann.com 86 (Delhi)
Contributed By
CA Prashant Agrawal
Assistant Manager- Taxation
prashantagrawal@mehragoelco.com
CA Vaibhav Jain
Partner
vaibhavjain@mehragoelco.com
Facts of the Case:
Revenue:
- The Revenue argued that during the transportation of goods, a conveyance was intercepted, and a physical verification was conducted on the same day.
- It was found that there was a mismatch in the delivery address, leading the department to pass an order of detention under Section 129(1) of the GST Act. The revenue contended that the detention order was justified based on the discrepancy in the address.
Petitioner:
- The petitioner challenged the order of detention passed by the department. They argued that all the tax invoices and e-way bills clearly mentioned the address and GSTIN/UIN details, and the transaction was arranged as a “Bill to” – “Ship to” arrangement.
- Despite the driver providing the relevant documents, including sales e-invoices and e-way bills, the goods vehicle was detained under Section 129(1) on the grounds of a mismatch in the delivery address. The petitioner asserted that there was no discrepancy in the quantity of goods carried in the vehicle.
- The petitioner contended that the impugned order of detention was illegal, arbitrary, and void ab initio. They sought the quashing of the order through the writ petition and requested the court to provide appropriate relief, considering the factual circumstances of the case.
Judgement:
-
Where conveyance was intercepted and order of detention under section 129(1) was passed on ground of mismatch of delivery address, since alternate remedy was available under section 107, petition was disposed directing assessee to file a statutory appeal
Summary:
In Thiruchy Royal Steels’ case, the High Court of Madras dealt with a writ petition challenging an order of detention passed under Section 129(1) of the Central Goods and Services Tax (GST) Act. The detention order was issued due to a mismatch of delivery address during the transportation of goods. The court noted that there were disputed questions of facts, which could not be addressed in a writ petition when an alternative remedy was available under Section 107 of the GST Act. Consequently, the court disposed of the petition, directing the petitioner to file a statutory appeal and apply for provisional release of the detained goods and vehicle under Section 129(1). The statutory appellate authority was instructed to consider the release of goods and vehicle and decide the appeal within four weeks. The petitioner had expressed willingness to furnish a bank guarantee for the penalty amount. The court emphasized that the order on the application made under Section 129(6) should be expedited without delay.
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Provisions of Section 13(8)(b) and Section 8(2) of IGST Act are legal, valid and constitutional and are confined in their operation to provisions of IGST Act only and same cannot be made applicable for levy of tax on services under CGST and MGST Acts.