M/S Bajrang Enterprises vs. Union Of INDIA And 3 Others
Held
The Court, without entering into the merits of the detention order, directed the release of the petitioner's goods and vehicle. This release was conditional upon the deposit of Rs. 28,000/- towards the proposed tax and Rs. 25,000/- towards penalty. Upon such deposit, the petitioner would be permitted to download a fresh E-way bill to facilitate the passage of goods through Uttar Pradesh by November 5, 2018. The Court explicitly clarified that it had not expressed any opinion on the merits of the detention/seizure order or the quantum of tax or penalty proposed by the authorities. The deposited amount would abide by the final orders passed in the consequential proceedings by the authorities. The writ petition was disposed of accordingly.
Facts
The petitioner, M/s Bajrang Enterprises, a dealer from Madhya Pradesh, had a consignment of 20,000 Kg of mustard seeds detained by GST authorities on October 24, 2018. A notice under Section 129(3) of the Central Goods and Service Tax Act, 2017, was issued, requiring the petitioner to deposit 50% of the proposed penalty under both Central GST and UP GST on the value of the goods for their release. The petitioner contended that the GST on the goods was 5%, amounting to Rs. 28,000/-. They also stated that the E-way bill could not be downloaded initially but was subsequently produced and valid until November 2, 2018. The High Court was approached via a writ petition.
Key Issues
1. Whether the detention of the petitioner's goods and vehicle under Section 129(1) of the Central Goods and Service Tax Act, 2017, was justified, considering the petitioner's submission regarding the correct GST rate and the availability of a valid E-way bill. Petitioner's arguments: The petitioner argued that the GST applicable to the goods was 5%, resulting in a tax incidence of Rs. 28,000/-. They further submitted that the E-way bill, though initially unavailable for download, was subsequently obtained and was valid until November 2, 2018. Respondent's arguments: The judgment does not record any specific arguments made by the respondent (Union of India and others).
Sections Cited
Section 129(1), Section 129(3)
AI-generated summary — verify with the full judgment below
Court No. - 29 Case :- WRIT TAX No. - 1397 of 2018 Petitioner :- M/S Bajrang Enterprises Respondent :- Union Of India And 3 Others Counsel for Petitioner :- Aloke Kumar Counsel for Respondent :- C.S.C.,A.S.G.I.
Hon'ble Pankaj Mithal,J.
Hon'ble Ashok Kumar,J.
Heard Sri Aloke Kumar, learned counsel for the petitioner.
The consignment of the petitioner who is a dealer of Madhya Pradesh of 20,000 Kg. of mustered seeds has been detained by GST authorities on 24.10.2018 under Section 129 (1) of the Central Goods and Service Tax Act, 2017 and in pursuance thereof a notice under Section 129(3) dated 24.10.2018 has been issued to the petitioner requiring him to deposit 50-50% of the penalty of the tax both under the Central GST and U.P. GST on the value of the goods for the purposes of release of the goods.
The submission of Sri Aloke Kumar, learned counsel for the petitioner is that on the aforesaid item GST @ 5% is chargeable and therefore the tax incidence comes to Rs. 28,000/- only. He further submits that E-way bill could not be down loaded but it was subsequently produced after down loading it on 24.10.2018 which is valid upto 2nd November 2018. In view of the aforesaid facts and ci
The judgment continues below.
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