Where vehicle along with goods of assessee detained during transit as same were…
Where vehicle along with goods of assessee detained during transit as same were not accompanied by e- way bill and assessee had deposited tax and penalty amount on its own calculation, Revenue Authorities were directed to release vehicle along with goods subject to assessee filing an undertaking that in case it did not succeed in proceedings, it shall deposit balance amount payable, as may be computed by Authorities.
Where vehicle along with goods of assessee detained during transit as same were not accompanied by e- way bill and assessee had deposited tax and penalty amount on its own calculation, Revenue Authorities were directed to release vehicle along with goods subject to assessee filing an undertaking that in case it did not succeed in proceedings, it shall deposit balance amount payable, as may be computed by Authorities.
Assessee
Detention, seizure and release of goods and conveyances in transit — Second hand goods — E-way bill — Vehicle along with goods of assessee were detained during transit in absence of e-way bill — Proceedings under section 130 of the Central Goods and Services Act, 2017 initiated
for confiscation of goods — Assessee claimed that goods were valued at less than rupees fifty thousand and hence, there was no necessity of providing an e-way bill — Assessee further submitted that goods in question were second hand goods and it had already deposited amount
of tax and penalty as computed under Rule 32(5) of the Central Goods and Services Rules, 2017 — Held, revenue was directed to release vehicle along with goods contained therein subject to assessee filing an undertaking that in case if, ultimately, it did not succeed in proceedings, it shall deposit balance amount payable, as may be computed by Authorities — Interim relief granted.
1. Mr. Uchit Sheth, learned advocate for the petitioner, has submitted that while admittedly, the goods in question were not accompanied by an invoice or eway bill during the course of transport, the goods are valued at less than Rs.50,000/ and hence, there was no necessity of providing an eway bill. It was submitted that the goods in question are second hand goods and hence, the value of such supply is required to be determined in terms of Rule 32 of the Central Goods and Services Tax Rules, 2017 and more particularly, subrule (5) thereof, which provides that where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored. It was submitted that in the present case, the petitioner has already deposited the amount of tax and penalty, as computed under Rule 32(5) of the said Rules. It was submitted that the petitioner is not a fly by night operator and despite the petitioner having put forward a proper explanation, the respondents have still proceeded under section 130 of the Central Goods and Services Tax Act, 2017 and initiated proceedings for confiscation of the goods.
2.Having regard to the submissions advanced by the learned advocate for the petitioner, issue Notice, returnable on 23.10.2019. By way of adinterim relief, the respondents are directed to release the vehicle bearing registration No. RJ09GA6703 along with the goods contained therein subject to the petitioner filing an undertaking that in case if, ultimately, it does not succeed in the proceedings, it shall deposit the balance amount payable, as may be computed by the respondent authorities, which shall be without prejudice to the right of the petitioner to challenge any adverse order that may be passed. Direct service is permitted.
(HARSHA DEVANI, J)
(SANGEETA K. VISHEN,J)
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Where vehicle along with goods of assessee detained during transit as same were not accompanied by e- way bill and assessee had deposited tax and penalty amount on its own calculation, Revenue Authorities were directed to release vehicle along with goods subject to assessee filing an undertaking that in case it did not succeed in proceedings, it shall deposit balance amount payable, as may be computed by Authorities.
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