Order Date – 16 December 2023

Parties: Jitendra Kumar Vs State of U.P. and Another

Facts –

• The Petitioner, Jitendra Kumar, transported goods from Patna to Aligarh. While goods were in transit the department detained the goods on the ground that the goods were not accompanied by the valid documents and the same was recorded in detention order also.
• However when the show cause notice was issued it was silent with regard to the reason reason given in the detention order and the same has been substituted by a different reason that in the GSTR 2A form, four out of other suppliers, that had been shown in the GSTR 2A, had their registrations suspended or cancelled.

Issue –

• Whether the department can issue different reasons in detention order and show cause notice?

Order –

• The Divisional Bench of Hon’ble High Court obsereved that the detention was made on the ground that the goods were not accompanied by valid documents. However, when the show-cause notice was issued, there is no whisper of any invalid document whatsoever. In fact, the stand was completely changed by the Revenue and this volte face cannot be countenanced by this Court.
• The detention of goods causes serious prejudice to an assessee and the same can only be done on the basis of specific, valid and reasonable grounds. In the present case, it is quite obvious that at the time of detention, the ground that was stated by the Revenue was incorrect. More so, there was no reason for the Revenue to have detained the goods and the consequential actions that followed, were obviously vitiated.
• Hence it was held that the detention order and the subsequent show-cause notice were bad in law, and accordingly the writ petition is allowed and the Revenue is directed to release the goods and the vehicle of the petitioner within a period of 7 days from date.