Muppala Vijetha Reddy vs. The State Of Ap
Held
The Court noted that Section 129 of the GST Act permits detention of goods in transit only if they are in contravention of the provisions of the GST Act or the Rules made thereunder. The petitioner argued that the impugned order, Form GST MOV-04, did not specify any such contravention. The Court observed that a bare reading of Section 129 necessitates such a contravention. The respondents, represented by the learned Government Pleader, sought time to obtain instructions and did not present arguments on the merits. As such, the Court did not make a final determination on the validity of the detention but listed the matter for further hearing. No specific finding was reached on the primary issue of contravention, and no operative directions were issued beyond listing the case.
Facts
The petitioner challenges a Form GST MOV-04, a physical verification report, which led to the detention of new tri-cycles purchased by her. The detention was pursuant to a circular dated 10.01.2024, issued in anticipation of State Assembly Elections, to monitor the movement of potentially freebie items. The petitioner's goods were allegedly covered under Sl.Nos. 2 and 3 of the table in the circular, a submission disputed by the petitioner's counsel. The order is referable to Section 129 of the GST Act, which pertains to goods in transit in contravention of the Act or Rules. The petitioner argues that the impugned order does not specify any contravention of the Act or Rules.
Key Issues
1. Whether the detention of goods under Section 129 of the GST Act is valid when the impugned order fails to specify any contravention of the provisions of the GST Act or the Rules made thereunder? Petitioner's arguments: The petitioner contends that Section 129 of the GST Act requires goods to be in transit in contravention of the Act or Rules for detention. The impugned order, however, lacks any mention of such contravention, rendering the detention illegal. The detention was based on a circular issued for election monitoring, which is not a statutory basis for detaining goods under Section 129. Revenue's arguments: The learned Government Pleader for the respondents sought time to obtain instructions and did not present arguments on the merits of the case during this proceeding.
Sections Cited
Section 129
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Cause title — parties, addresses and appearances
OFFICE NOTE
01.03.2024 RNT,J & HN,J
The petitioner is challenging the impugned Form GST MOV-04 i.e. physical verification report, by which the petitioner‟s new tri-cycles purchased by her have been detained, pursuant to the circular No. CCT‟S Ref.No.Enft/CEW/E1/145/2022, dated 10.01.2024 which inter alia provided “in order to watch the movement, listing of possible freebies which are election sensitive as shown in the below table”, in view of the State Assembly Elections to be held shortly. It is submitted that the petitioner‟s commodity would be covered under Sl.Nos.2 and 3 mentioned therein. It is so submitted by the learned Government Pleader, which is disputed by the learned counsel for the petitioner.
Such order it is submitted is referable to Section 129 of the G.S.T. Act. However, a bare reading of Section 129, shows that it refers to the goods, in transit in contravention of the provisions of the G.S.T. Act or the Rules made therein.
Learned counsel for the petitioner submits that even prima facie in the impug
The judgment continues below.
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