Order Date – 16 April 2023

Parties: S/S S.K. Trading Co And Another Vs Additional Commissioner Grade 2(Appeal) And Another

Facts –

• The Petitioner, S/S S.K. Trading Co, placed an order for supply of mixed ready-made garments, which were being transported by petitioner no.2. 
• On 13.09.2022 the goods while in transit were intercepted and a physical verification report was prepared on 17.09.2022 in form GST MOV-04 and no discrepancy was found in the quantity of the goods in question. On 21.09.2022, a detention order was passed detaining the goods in question mainly on the ground that the goods were without E-Way bill.
• It was contended by the petitioner that in the event Part - B of the E-Way Bill was not being carried, no penalty is imposable. He further argues that in any event, the detaining authority does not have the jurisdiction to value the goods as has been done.

Issue –

• Whether the detention of goods without E-Way bill is in order?

Order –

• The Single Bench of Hon’ble High Court observed that the value of the supply of goods is clear from the transaction value as indicated in the tax invoice which is on record and there being nothing on record to demonstrate that the said tax invoice was not acceptable to the respondents for any reason, it was held that in view of Explanation 2, Rule 138 read with Section 15(1), the transaction value is the value which is indicated in the invoice.
• Further it was held that the petitioner has to be treated as the owner of the goods in view of the law laid down in the case of M/s Margo Brush India. The orders impugned insofar as it imposes the burden on the petitioner to get the goods released in terms of Section 129(1)(b) of the Act is bad in law.
• It was directed the respondents to release the goods to the petitioners if the petitioners offer to pay two hundred percent of the tax payable on the goods valuing the same on the basis of the valuation as shown in the invoice. The vehicle detained by the respondents shall also be released on payment of the amounts as indicated.
• The writ petition is allowed.