The Kerala High Court in an earlier judgement namely Indus towers Limited vs The Assistant State Tax officer has already held that section 129 and 130 are correlated with each other and goods can be detained u/s 129 only if the goods are liable for confiscation u/s 130 and goods can be confiscated u/s 130 only when there is a taxable supply and there is violation of procedure with intent to evade the payment of tax.
No Detention of goods on the issue of misclassification or undervaluation under GST
Labels:
GST
The Kerala High Court in a
very important judgement namely Sameer Mat Industries vs the State of
Kerala has held that Issue
of misclassification and under valuation of goods has to be gone into by
respective Assessing Officers and not by detaining officer.
The judgement is very important in view of the fact that GST
authorities are very much active across India on the road side and lot of
penalties have been imposed in recent times on the road side.
Before moving to the
judgement, it is pertinent to mention here that section 129 deals with
the detention of goods and conveyance on the roadside for transporting the
goods in violation of the provisions of the law and thereby levy of penalty thereunder or
confiscation u/s 130 in case of non payment of penalty.
The Kerala High Court in an earlier judgement namely Indus towers Limited vs The Assistant State Tax officer has already held that section 129 and 130 are correlated with each other and goods can be detained u/s 129 only if the goods are liable for confiscation u/s 130 and goods can be confiscated u/s 130 only when there is a taxable supply and there is violation of procedure with intent to evade the payment of tax.
The Kerala High Court in
Sameer Mat Industries case as stated above has held that the issue of misclassification
and under valuation has to be gone into by the respective assessing officers
and not by the detaining officer. In such circumstances, this Court is not
inclined to permit the further detention of the goods. The verdict is
very important and will hopefully help all the concerneds.
The full judgement is as
follows:
HIGH COURT OF KERALA
Sameer Mat Industries
v.
State of Kerala*
K.
VINOD CHANDRAN, J.
W.P.
(C) NO. 36413 OF 2017
NOVEMBER 20, 2017
M. Gopikrishnan Nambiar, P. Gopinath, K. John Mathai, Joson
Manavalan, Kuryan Thomas, Paulose C. Abraham and Raja
Kannan, Advs. for the Petitioner. Dr. Thushara James,
Sr. Govt. Pleader and Bobby John, Adv. for the Respondent.
JUDGMENT
1. The petitioner the consignor of certain goods has approached
this Court against the notice issued by the detaining authority under the
CGST/SGST Act. After detention when verification was made, it was found that
there was mis-classification as also under valuation. The mis-classification
was in so far as the goods being described as falling under HSN Code 4601 as
per the invoice. On verification of the goods transported, it was seen that it
could only fall under HSN Code 3926. There was a rate difference in so far as
HSN Code 4601 attracting tax @18% while HSN Code 3926 attracting tax @28%.
Further ground was the mis-classification which the detaining authority assumed
on the basis of the market value of the goods as known to him but not verified
with any material. The detention notice also directed payment of CGST and SGST
each @14% totaling 28% and the GST @5% for one other commodity as also a
security deposit of an equal amount.
2. The essential contention taken up by the petitioner is that the
goods were transported inter-State and neither CGST nor SGST was applicable to
such goods. It is also contended that the HSN Code as disclosed in the invoice
is the one used by the manufacturer. The petitioner having purchased the goods
from the manufacturer at Delhi could not change the HSN Code in which event
there would be a violation of the provisions of the tax statutes. It is further
contended that the E-way Bill uploading procedure as provided in the Rules to
the CGST which has been adopted under the IGST is not implemented as of now.
The same is deferred till 31.12.2017. Hence to support the case of the
inter-State transport the petitioner need accompany the goods only with an
invoice which has been done in the present case.
3. The learned Government Pleader however submits that the release
of goods be permitted only on the payment of the amounts demanded, especially
since the petitioners-consignors are not dealers within the State. The
authorities appointed under the IGST and the CGST/SGST are one and the same and
it is the authorities of the State, who have been empowered to implement the
provisions of the goods and service tax enactments. It is also contended that
the supply of goods with an invoice without proper description being made
attracts penalty.
4. There is no doubt that the authorities appointed by the State
have been empowered to implement the provisions of the enactments which
regulates the inter-State as also the intra-State trade. However the specific
power invoked in issuing the impugned notice is under the CGST/SGST which is
applicable only to the intra-state movement of goods. Admittedly the petitioner
has consigned the goods from Tamil Nadu and was transporting it to the 3rd
respondent at Pattambi. The 3rd respondent also appears and submits that they
are ready to accept the consignment. The issue of mis-classification and under
valuation has to be gone into by the respective assessing officers and not by
the detaining officer. In such circumstances, this Court is not inclined to
permit the further detention of the goods. The petitioners shall be permitted
release of the goods on the execution of simple bond without sureties as
expeditiously as possible. The detaining officer shall inform the assessing
officer of the 3rd respondent who would be entitled to take appropriate
proceedings at the time of assessment of the 3rd respondent. The assessing
officer of the petitioners at Tamil Nadu would also be intimated, the details
of whom shall be furnished by the petitioners before release of the goods.
5. With the above observations the writ petition is allowed making
it clear that the petitioners and the 3rd respondent shall co-operate in the
adjudication proceedings under the IGST Act. The notice shall be deemed to be
one under the IGST Act. No observation on merits and the parties left to suffer
their respective costs.
Subscribe to:
Post Comments
(
Atom
)
Featured PostTCS to apply only on cash portion of sales transaction CBDT clarifiesWelcome clarification by CBDT on TCS on Cash Sale. CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholde... ![]() Category
![]() Popular Posts
![]() About MeBlog Archive
![]() WARNING
Nobody is permitted to copy or publish the articles existing on this blog on any website or on any other media without my express permission. ![]() Disclaimer
No one is responsible for any claims if somebody finds that the information/opinions provided in this blog is incorrect and the blog is meant only to share knowledge and exchange views in a meaningful manner.
![]() Useful Links
Powered by Blogger.
![]() |
Acquaintance of GST is considered with be a huge advance in the change of roundabout tax assessment in India. Amalgamating a few Central and State charges into a solitary expense would help relieve the twofold tax assessment, prompting a typical national market. Every one of the merchants will favor buy with solicitations, since that would give them better net revenues as the wholesaler will get credit of all the expenses paid at the past stage. At present, the merchant needs to hold up under the weight of the extract obligation. Refer GST Registration to know more about GST.
great
Thank you for sharing an interesting and very useful article..
GST Coaching Center in Chennai | Best Auditor in Chennai | Tax Training Course in Chennai | E-filing Training Classes in Chennai | Tax Training Course in Chennai | Accounting Course in Chennai | GST Registration Consultants in Chennai
I just needed to record a speedy word to express profound gratitude to you for those magnificent tips and clues you are appearing on this site.advisory firms in dubai
greatare
Expected to form you a next to no word to thank you once more with respect to the decent recommendations you've contributed here.audit firms in dubai
I feel satisfied to read your blog, you have been delivering a useful & unique information to our vision.keep blogging.
Regards,
gst classes in chennai
Web Designing Course in Chennai
microsoft dynamics crm training
CCNA Training in Chennai
Angularjs Training in Chennai
ux design course in chennai
Web Designing Course in chennai
Tally Course in Chennai
Your blog have very good information regarding the service, I also have some worth information regarding the service, I think this info will be very helpful for you. Gst Registration Online India
Thanks for sharing such a wonderful article. If you want to get appliance repair cover services then, cover-4-less.com is here for you. Visit us on appliance repair cover UK
Great Article really helped me you can get your child enrolled through EzySchooling.com
Admission Form For Nursery in Delhi
Best Post on GST and Bamboo . best article have seen.
if some one want www.vpalkar.com mumbai
Thanks for sharing the best information and suggestions, If you are looking for the best Billing Software For Small Business, then visit Syncloud Softech. Highly energetic blog, I’d love to find out some additional information.
HSN Code Finder check out this site to know more
thanks for the very usefull infomration get register your own busniess here Company Registration in chennai
I wish to show thanks to you just for bailing me out of this particular trouble.As a result of checking through the net and meeting techniques that were not productive, I thought my life was done.
CRM with Invoicing
In the trademark registration often reflects the creativity. ... According to a person in char jordans on sale online ge of Harvard University, says Harvard trademark registration for these words do not want these slogans.
xyz
IEEE Final Year projects Project Centers in India are consistently sought after. Final Year Students Projects take a shot at them to improve their aptitudes, while specialists like the enjoyment in interfering with innovation. For experts, it's an alternate ball game through and through. Smaller than expected IEEE Final Year project centers ground for all fragments of CSE & IT engineers hoping to assemble. IEEE Project Domains It gives you tips and rules that is progressively critical to consider while choosing any final year project point.
JavaScript Online Training in India
JavaScript Training in India
The Angular Training covers a wide range of topics including Components, Angular Directives, Angular Services, Pipes, security fundamentals, Routing, and Angular programmability. The new Angular TRaining will lay the foundation you need to specialise in Single Page Application developer. Angular Training
Such a very useful article. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article.
angular js training in chennai
angular js online training in chennai
angular js training in bangalore
angular js training in hyderabad
angular js training in coimbatore
angular js training
angular js online training
thanks for the above info. plse visit my page if any required
GST Registration, GSTR filing, Income Tax, Company Registration
synmac consultancy services in bengaluru
synmac.in
GST CONSULTANTS IN BANGALORE
GST RETURN FILING IN BANGALORE
TAX CONSULTANTS IN BANGALORE
COMPANY REGISTRATION IN BANGALORE
GST REGISTRATION CONSULTANTS IN BANGALORE
thanks for your blog and information...
if any one need requirement in GST consultant in Delhi, tax consultant in delhi for more details click the bellow link..
company register
GST register
Good Post! Thank you so much for sharing this pretty post, it was so good to read and useful to improve my knowledge as updated one, keep blogging.
Cyber Security Training Course in Chennai | Certification | Cyber Security Online Training Course | Ethical Hacking Training Course in Chennai | Certification | Ethical Hacking Online Training Course | CCNA Training Course in Chennai | Certification | CCNA Online Training Course | RPA Robotic Process Automation Training Course in Chennai | Certification | RPA Training Course Chennai | SEO Training in Chennai | Certification | SEO Online Training Course
Thank you so much for sharing this worth able content with us. The concept taken here will be useful for my future programs and i will surely implement them in my study. Keep blogging article like this.
Quoting & Invoicing Software
Hello! Hope you are doing well, thank you very much for sharing this information. I myself have been searching for Best intermediate college in hyderabad for NEET to start preparing for the exams. I found this institute that offers both online classes as well as recorded video lectures for all courses. Fellow aspirants please do check it out! All the best!
synmac tax consultant in Delhi
doing company registration in Delhi,GST registration in Delhi,Tax consultant in Delhi...
if you have any requirement GST,ITR
click the below link...
company register
company register in Delhi
GST register in Delhi
tax consultant in Delhi
Everyone wants to get unique place in the IT industry’s for that you need to upgrade your skills, your blog helps me improvise my skill set to get good career, keep sharing your thoughts with us.
Billing Software
Nice post
xyz
synmac tax consultant in Delhi
doing company registration in Delhi,GST registration in Delhi,Tax consultant in Delhi...
if you have any requirement GST,ITR
click the below link...
tax consultant in Delhi
company register in Delhi
GST register in Delhi
tax consultant in Delhi
the information you have updated is very good and useful,plse update further. if you required any info regarding TAX & GSTR please visit
Accounting Services in bangalore|Auditing Services in bangalore
|Trademark Registration|Payroll Processing
|GSTR for finance|
It’s really great information for becoming a better Blogger. Keep sharing, Thanks. For more details to visit best college in hyderabad for JEE
Amazing post, Which you have shared here about the invoicing. This article is very informative and I liked to read it. Thank you. Free Invoice Software for Traders
the information you have updated is very good and useful, please update further.
if you require any info regarding TAX & GSTR please visit
Tax consultants in Bangalore
GST consultants in Bangalore
Thank you for the detailed information through this blog. If any one need requirement in GST consultant in India, for more details click the bellow link..
GST registration in India
wonderful article contains lot of valuable information. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article.
This article resolved my all queries.good luck an best wishes to the team members.continue posting.learn digital marketing use these following link
Digital Marketing Course in Chennai