The Kerala High Court has held that the goods detained by the authorities under the Goods and Services Tax ( GST ) Laws cannot be released without furnishing adequate security.
In the instant case, a consignment of marble, granite slabs, and tiles that were being transported at the instance of the petitioner was detained by the State GST officers finding a defect in the E-Way bill used by them.
Before the High Court, the petitioner contended that the defect indicated the notice is only a technical one, and therefore ought not to have been a reason for detaining the goods especially when it was not proved that there was any attempt at evasion of tax by them.
On the other hand, the Revenue contended that a minor defect in E-way bill can be a ground for the detention of goods as the same is mandatory after 1.4.2018.
After hearing the submissions of both the sides, Justice A.K Jayasankaran Nambiar noted that a Division Bench of this Court has already found that the goods detained under a detention notice issued in terms of the CGST/SGST Act cannot be released unless a security equal to the amount demanded is insisted from the assessee.
“I am of the view that the ends of justice would be served by directing the 1st respondent to release the goods and the vehicle to the petitioner on the petitioner furnishing a bank guarantee for the security amount demanded in Ext.P3 detention notice, before the said authority.”Subscribe Taxscan AdFree to view the Judgment