[CGST ACT] Dept Can't Seize Goods If Quantity Or Weight Of Goods Is Found Correct On Physical Verification: Calcutta High Court

The Division Bench of Chief Justice T.S Sivagnanam and Justice Hiranmay Bhattacharyya noted that the quantity or the weight of the goods, which were carried in the vehicle, has been found to be correct by the department on physical verification and there is no discrepancy.

The bench further stated that “the inspecting authority appears to have made a roving enquiry and went beyond the description of the goods as described in three invoices and has recorded information regarding the size of the pipe, shutter, TMT Bar which detail was not mentioned in the invoices. Therefore, the question of invoking Section 129 of the Act does not arise in the facts and circumstances of the case.”

Section 129 of CGST Act, 2017 deals with the detention, seizure, and release of goods and vehicles in transit. If goods are transported without proper documentation or in violation of the law, they can be detained or seized.

In this case, the assessee has challenged the show-cause notice, the unsigned summary of show-cause notices and the order of demand for tax and penalty, in GST Form MOV-09.

The assessee had filed a writ petition challenging the show cause notice and the order which was dismissed.

The issue before the bench was whether detention of goods, which were carried in a vehicle under the cover of three invoices, were different from the goods which were actually found in the vehicle during the course of inspection.

The bench stated that the authority has not been able to pinpointedly show that the assessee had an intention to evade payment of tax.

HSN classifications of goods are identical and this is not being disputed by the Department. Therefore, it is not the case where procedures under Section 129 of the Act could have been drawn and the goods could have been detained and penalty could have been imposed, added the bench.

In view of the above, the bench directed the department to release the vehicle along with the goods within four days from the order.

Case Title: Ashok Sharma v. The State of West Bengal & Ors.

Case Number: FMA 136 of 2025

Counsel for Appellant/ Assessee: Himangshu Kumar Ray

Counsel for Respondent/ Department: Anirban Ray

Click Here To Read/Download The Order