The Kerala High Court held that goods can not be detained merely on the basis that the consignee was mentioned as an Unregistered Person in E-Way Bill.
The petitioner, ABCO Traders has approached the Court aggrieved by the order of detention that was issued to it detaining a consignment of lubricant oil that was being transported at its instance.
The objection of the respondent authority was that the consignee was shown as an unregistered person in the e-way bill that accompanied the transportation of the goods.
It was also pointed out that the petitioner had collected CGST and SGST in the delivery challan that was used for the stock transfer of the goods thereby giving rise to suspicion with regard to the nature of the transaction itself.
The issue raised in this case was whether detention of goods merely because the consignee is mentioned as an unregistered person in the e-way bill is justified in law.
The single judge bench of Justice A.K.Jayasankaran Nambiar stated that, the reasons shown for detaining the consignment are not sufficient to attract the provisions of Section 129 of the GST Act.
“The detention in the instant case cannot, therefore, be seen as justified. I therefore allow the writ petition by directing the 1st respondent to immediately release the goods and the vehicle covered by a detention notice,” the court said.Subscribe Taxscan AdFree to view the Judgment