Detained Goods to be Released on Furnishing Bank Guarantee or 200% Cash Payment: HC
- Blog|News|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 25 May, 2023
Latest from Taxmann
Case Details: Haresh Kumar v. Assistant Commissioner (ST) - [2023] 150 taxmann.com 380 (Madras)
Judiciary and Counsel Details
-
- C. Saravanan, J.
- G. Natarajan for the Petitioner.
- C. Harsharaj for the Respondent.
Facts of the Case
The assessee had transported consignment of goods accompanied by invoice and an e-way bill, which was intercepted and detained by the department. The goods were detained on the ground that the supplier, from whom the assessee purchased the goods, had wrongly passed on the Input Tax Credit and thereby entailing the assessee to avail and utilize the same for discharging tax liability on the supplies made by the supplier.
It filed writ petition for release on goods and submitted that the movement of goods was in accordance with provisions GST Act and a statutory appeal under Section 107 was filed before Appellate Authority after payment of 25% of disputed penalty.
High Court Held
The Honorable High Court noted that once order was stayed, the goods could be released subject to such other safeguards that may be imposed by Appellate Authorities. The officer who detained goods became functus officio, once there was a mandatory pre-deposit and order had no force and all further recovery proceedings would be subject to final outcome of appeal.
Therefore, the Court directed the assessee to deposit maximum penalty of 200% of tax to safeguard interest of revenue after adjusting amount already deposited or furnish Bank Guarantee in terms of Section 129(c). The Court also held that the goods should be released on furnishing Bank Guarantee for balance amount of penalty or payment of same in cash.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
