GST Department can’t resort to an Arbitrary and Statutorily Unwarranted Detention of Goods in Course of Transportation: Kerala HC [Read Order]

The Kerala High Court, while hearing the writ petition filed by the Alfa Group, quashed the unwarranted detention order and directed the authorities to release the goods detained. The order was passed by the single bench of Kerala High Court consisting of Justice A.K Jayasankaran Nambiar.

The goods belonging to the petitioner were detained in a parcel godown, on the ground that the value quoted in the invoice that accompanied the goods was low when compared to the Maximum Retail Price (MRP) of the goods. It was also alleged that the HSN code of the goods was wrongly entered

The court pointed out that the, “When the statutory scheme of the GST Act is such as to facilitate a free movement of goods, after self-assessment by the assessee concerned, the respondents (authorities) cannot resort to arbitrary and statutorily unwarranted detention of goods in the course of transportation”.

The court further clarified that there is no provision under the GST Act which mandates that the goods shall not be sold at prices below the MRP declared thereon.

The court observed that, “Such action on the part of department officers can erode public confidence in the system of tax administration in our country and, as a consequence, the country's economy itself.”

To Read the full text of the Order CLICK HERE