.Date – 18 August 2022

Facts

• The Petitioner, M/s. Shrimali Industries Pvt. Ltd.’s vehicle/goods were illegally detained by the respondent authorities while in transit. 
• Authorities contended that Aluminium scrap was being transported in the vehicle and it was falsely shown to be Aluminium sections in the inspection memo.
• Petitioner contended that action taken is in gross contravention of the procedure provided under Section 68 read with Section 129 of the CGST Act and the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances dated 13.04.2018.
• Revenue submitted that the documents carried in the vehicle were with a patently fraudulent declaration that the goods under transit was Aluminum scrap whereas actually, brand new brand Aluminum Sections wrapped in protective plastic packaging material was being transported. The rate of the scrap as denoted in the E-Way Bill was mere Rs.6,42,600/- whereas, the rate of new Aluminum sections weighing 6300 Kgs. would be Rs.11,02,500/-.
• Aggrieved, the petitioner filed a writ petition to quash and set aside the impugned detention order and show cause notice dated 08.08.2018

Issue

• Whether the vehicles detained by the officials of the Assistant Commissioner of State Tax, Anti-Evasion, Udaipur justified in their action?

Order

• The Court observed that the facts portray the goods in transit to be aluminium scrap in the documents, the petitioner was indulging in blatant evasion of GST. By no stretch of imagination, can brand new Aluminum sections be placed on equivalence with Aluminum scrap.
• The authorities observed that the goods in question were fraudulently described as aluminium scrap and hence, the respondent authorities were perfectly justified in detaining the petitioner’s vehicle and the goods after noticing this blatant mis-description during interception.
• Further, the Court observed that SCN dated 08.06.2018 is appealable under Section 107 of the CGST Act and relied on the case of Assistant Commissioner of State Tax & Ors. vs. M/s. Commercial Steel Limited and held that the instant writ petition is not maintainable.