Failure Of Proper Officer Detaining Vehicle To Issue Notice: Madras High Court Directs Release Of Vehicle And Goods
The Madras High Court bench of Justice Anitha Sumanth has held that Section 129 of the CGST Act provides for the detention and seizure of the vehicle upon condition that an order of detention/seizure shall be passed at the time of detention/seizure and duly served upon the person transporting the goods.The petitioner claimed to have obtained iron scrap from multiple merchants and to...
The Madras High Court bench of Justice Anitha Sumanth has held that Section 129 of the CGST Act provides for the detention and seizure of the vehicle upon condition that an order of detention/seizure shall be passed at the time of detention/seizure and duly served upon the person transporting the goods.
The petitioner claimed to have obtained iron scrap from multiple merchants and to be shipping it from Guwahati to Coimbatore. The truck transporting the package experienced technical difficulties on May29, 2020. As a result, the driver was obliged to deviate from the intended route to the destination in order to locate a service shop to solve the problem.
The vehicle had been stationed at the Sri Veeraragavar service station at night. On May 30, 2022, at 12.30 a.m., the vehicle was intercepted at Sholavaram by the Deputy Tax Officer, Roving Squad, who, upon a perusal of the documents that the driver was carrying, arrived at the conclusion that the goods were being re-routed without a proper e-way bill. The interception was justified by the respondent relying upon a statement of the driver that was adverse to the petitioner. However, a copy of the statement has not been supplied to the petitioner.
The department confirmed that no order of detention was issued, and consequently, the question of service upon the petitioner does not arise. The provisions of Section 129 (3) require the proper officer detaining the goods to issue a notice specifying the penalty payable and then pass an order within 7 days from the date of service of the notice.
The court ruled that no notice was ever provided, despite the fact that the seizure occurred as early as May 30, 2022. The respondent's act of detention of the vehicle was manifestly unlawful.
Case Title: Tvt.LAF Enterprises Versus Commissioner of Commercial Tax
Case No: W.P.No.14374 of 2022
Dated: 10.06.2022
Citation: 2022 LiveLaw (Mad) 256
Counsel For Petitioner: Advocate J.Ashish
Counsel For Respondent: Advocate V.Prasanth Kiran