The Madras High Court directed the GST Authority to immediately transport goods if no case is made out.
The petitioner, Healthcubed India Private Limited has challenged the impugned show cause notices issued under Section 129(3) of the Central Goods and Services Tax Act, 2017 on the ground that there is predetermination and therefore, the show-cause notices issued by the respondent are liable to be quashed.
The petitioner has imported two consignments of Oxygen cylinders from a supplier abroad and has filed two Bill of Entry. It is the further case of the petitioner that those cylinders were to be transported to Karnataka, where the petitioner/Company is located and therefore, the petitioner paid appropriate customs duty amounting to Rs.4,59,619/- and appropriate IGST of Rs.38,79,019/- under the provisions of IGST Act, 2017.
The petitioner submitted that the lorry in which the imported consignments were loaded was intercepted, immediately after the goods were cleared from the Customs area en route and detained. Thereafter, the impugned show cause notices have been issued. It is submitted that those cylinders were not even removed from the lorries and that the petitioner had also replied to the first show-cause notice vide reply.
The single bench of Justice C.Saravanan held that the show cause notices details and articulates the case of the respondent. It is for the petitioner to reply to the show-cause notices to have the goods cleared. If the goods were really meant to be sent to Karnataka for which the petitioner had allegedly paid IGST amounting to Rs.38,79,019/- under the provisions of IGST Act, 2017, no useful purpose will be served by quashing the show cause notices by directing the respondents to issue a fresh show-cause notice. It would only further delay the clearance of the imported consignments.
“These writ petitions are disposed of by giving liberty to the petitioner to file additional representations and reply to the impugned show cause notices immediately. The respondent is directed to pass appropriate orders on merits and in accordance with the law, within a period of 15 days from the date of receipt of a copy of this order. If no case is made out, goods should be allowed to be transported immediately,” the court said.
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