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Detention of goods in absence of Transit Declaration Form

Shanti Prime Publication Pvt. Ltd.

Sec. 129 of the Central Goods & Services Tax Act, 2017 — Goods in Transit — The petitioner claims to transporting 'Panmasala' from Delhi to Dumka, Jharkhand. The goods were passing through State of U.P. being a transit State. On 27.10.2017 the goods were detained. At that stage only one reason was informed to the petitioner for detention being absence of Transit Declaration Form (TDF in short). The petitioner claims to have filed reply on 27.10.2017. Along with that reply a copy of it's invoice and other documents were annexed. It appears that at the stage of passing seizure order dated 28.10.2017, the seizing authority compared the IGST and compensation cess paid as disclosed in the Tax Invoice found accompanying the goods and as disclosed in the copy of the Tax Invoice filed by the petitioner along with the reply. There is apparent discrepancy in those particulars. While in the copy of Tax Invoice (number 19) dated 25.10.2017 found accompanying the goods the IGST and the compensation cess values have been mentioned at Rs. 17,42,400/- and Rs. 11,88,000/- respectively. Those values have been mentioned at Rs. 5,54,400/- and Rs. 11,88,000/- in copy of Tax Invoice (no. 19) dated 25.10.2017 filed along with the reply furnished by the petitioner. Taking note of the aforesaid discrepancy the proper officer has without issuing any other or further notice passed the seizure order wherein an intention to evade tax has been inferred against the petitioner. Consequently, the penalty order has been passed on 31.10.2017. Allahabad High Court while disposing of the writ petition held that:—Without going into the merits of the case, we find that the allegation made in seizure order that petitioner was not given any opportunity to show cause or give reply to the allegation on which goods have been seized. Inasmuch as the petitioner had no notice or opportunity to explain his conduct with respect to the discrepancy in the Tax Invoice alleged in the seizure order, we consider it proper to set aside the orders dated 28.10.2017 and 31.10.2017 passed under Section 129(1) and 129(3) of the Act. The matter is remitted to the respondent no. 4. The petitioner shall treat the seizure order dated 28.10.2017 to be a show cause notice in respect of the charge levelled against it. It shall furnish the reply thereto before respondent no. 4 necessarily within a period of one week from today. Upon such reply being furnished, respondent no. 4 shall have one week thereafter to pass a fresh order, in accordance with law. However, inasmuch as there is no allegation against the vehicle with respect to the same may be released in the meanwhile without any security. In view of the above, the instant writ petition is disposed of.[2018] 50 TUD 102 (ALL)