Mis-classification of the goods cannot be a reason for detaining the consignment under Section 129 of the GST Act.
Section 129 of the CGST Act — Goods in Transit – Detention on the basis of Mis-Classification of the goods-- The petitioner challenged the notice of detention on the ground that there was a mis-classifications of the goods transported. The petitioner submitted that alleged mis-classification of the goods cannot be a reason for detaining the consignment under Section 129 of the Act. The court observed that the allegation of mis-classification of goods cannot warrant a detention of the goods under Section 129 of the Act. If the respondents feel that there has been a mis-classification of the goods, then it is for them to prepare a report based on the physical verification done by them, get the petitioner to sign on the same after recording his objections, if any, to the findings recorded therein, and thereafter forward a copy of the said report to the Assessing Officer of the petitioner. The detention of the goods in transit cannot be justified for the said reasons.
Held that:- The Hon’ble High Court quashed the notice and directed the respondents to release the goods and the vehicle, after getting the petitioner's signature/ objections recorded on the report prepared by the respondents pursuant to the physical verification of the goods in question.