SHRIMALI INDUSTRIES PVT. LTD. Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) The petitioner herein has approached this Court through this writ petition for assailing the order whereby, the vehicle of the petitioner (GJ-09-Y-9808) was detained by the officials of the Assistant Commissioner of State Tax, Anti-Evasion, Udaipur and so also, the show cause notice dtd. 8/6/2018.

(2.) Shri Sharad Kothari, learned counsel representing the petitioner submitted that the vehicle/goods of the petitioner were illegally detained by the respondent authorities while in transit. Aluminum scrap was being transported in the vehicle and it was falsely shown to be Aluminum Sec. in the inspection/detention memo. The action so taken is in gross contravention to the procedure provided under Sec. 68 read with Sec. 129 of the CGST Act and so also the guidelines/procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances dtd. 13/4/2018 issued by the Government of India.

(3.) He placed reliance on the judgment rendered by the Kerala High Court in the case of M/s. Podaran Foods India Private Limited v. State of Kerala reported in 2021 (1) TMI 552 and urged that a mere suspicion of mis-classification of goods cannot be the basis for detention under Sec. 129 of the CGST Act. On these submissions, learned counsel Shri Kothari implored the Court to accept the writ petition, quash and set aside the impugned vehicle/goods detention order (Annexure-5) dtd. 6/6/2018 and the show cause notice (Annexure-5) dtd. 8/6/2018 issued in pursuance of the illegal detention procedure.