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Undervaluation of Goods in Invoice is No Ground for Detention of Goods u/s 129 of CGST: Chhattisgarh HC [Read Judgment]

Undervaluation Goods - Confiscate Goods - Taxscan

The Chhattisgarh High Court has held that undervaluation of goods in the invoice can not be the ground for the detention of goods under Section 129 of the Central Goods and Service Tax (CGST) Act, 2017.

In the case of K.P. Sugandh Ltd. vs. State Of Chhattisgarh set aside the impugned order passed by the Income Tax Authorities, the petitioner requested for the release of the vehicle carrying goods belonging to the petitioners from the manufacturing centres to the dealer.

The petitioner namely K.P. Sugandh Ltd. is a company which is engaged in the manufacturing of ‘Pan Masala and Tobacco Products’. The petitioner dispatched the goods both Pan Masala and Tobacco Products to its customer through the Maxi Truck.

While the goods were being transported, the petitioner had issued with a tax invoice as well as e- way bill generated and handed the same to the Incharge of the conveyance i.e. the driver of the truck. Inspite of the Incharge of the conveyance producing the necessary invoice bill and the e-way bill the respondent authorities seized the vehicle and the goods on the grounds of there being discrepancies in the valuation of the goods and thereafter detained the vehicle and the goods.

The issue raised in this case was whether the goods undervaluation of goods in the invoice can be the ground for the detention of goods under Section 129 of the Central Goods and Service Tax (CGST) Act, 2017 or not?

The Single Judge of the High Court of Chhattisgarh consisting of Justice P. Sham Koshy held that the undervaluation of goods in the invoice can not be the ground for the detention of goods under Section 129 of the Central Goods and Service Tax (CGST) Act, 2017.

To Read the full text of the Judgment CLICK HERE
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