M/S.Commercial Steel Company vs. The Assistant Commissioner Of State Tax
Held
The Court held that 'wrong destination' is not a valid ground for detaining goods or levying tax and penalty. The payment made under duress was not justified as the transaction was inter-State and IGST was already paid.
Facts
The petitioner's consignment was detained at Jeedimetla, Hyderabad, with a notice issued under Section 129(3) of the CGST Act alleging 'wrong destination'. The petitioner was compelled to pay tax and penalty due to a family wedding and pressure for vehicle release.
Key Issues
Whether detention of goods and collection of tax/penalty based on 'wrong destination' is permissible under GST law, and if payment made under economic duress is recoverable.
Sections Cited
Section 129, Section 67, Section 68
AI-generated summary — verify with the full judgment below
HONOURABLE SRI JUSTICE M.S.RAMACHANDRA RAO
AND HONOURABLE SRI JUSTICE T. AMARNATH GOUD
WRIT PETITION No.2161 of 2020
ORDER: (per Hon’ble Sri Justice M.S. Ramachandra Rao)
The petitioner herein is a proprietary concern engaged in the business of Iron and Steel and is a registered dealer on the rolls of the Hyderabad Rural STU-I, Centre Jurisdiction, Gajularamaram, Hyderabad (2nd respondent).
The petitioner was allotted GST No.36AAMPA4421B2ZC.
The petitioner purchased goods from a dealer M/s. JSW Steel Limited, Vidyanagar, Karnataka vide Tax Invoice No.19UJ2900401551 dt.11.12.2019 valued at Rs.3,52,920.74. 4. Against the said tax invoice under the Integrated Goods and Service Tax Act (I.G.S.T.), tax at Rs.18% was levied coming to Rs.63,526/-. The plea of the petitioner
According to petitioner, when the consignment was coming from Vidyanagar, Karnataka with all requisite documents through a vehicle bearing No.KA 35 C 0141, it was detained at Jeedimetla at 05:30 p.m. on 12.12.2019, and a notice under Section 129 (3) of the C.G.S.T. Act, 2017 (for short, ‘the Act’) was issued alleging ‘wrong destination’ and directing payment of 9% o
The judgment continues below.
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