Indus Towers Ltd Vs Assistant State Tax Officer reported in 2018-TIOL-12-HC-KERALA-GST.
Goods detained because it was not accompanied by State E-way bill. Since the assessee had not uploaded declaration in Form KER-1 before the goods were transported, such transportation was not in accordance with Rules 55 (Transportation of goods without issue of invoice) and 138 (Information to be furnished prior to commencement of movement of goods and generation of e-way bill) of the State GST Rules –
Decision of High Court
Whether detention u/s 129(Detention, seizure and release of goods and conveyances in transit.) of the Acts was justified merely for non compliance of Rules 55 and 138 of the State GST rules – Considered provisions of Sections 129 & 130 (Confiscation of goods or conveyances and levy of penalty) of the statutes – Combined reading of the two indicates that detention of goods is contemplated only when it is suspected that the goods are liable for confiscation – In such case, mere infraction of the procedural Rules like Rules 55 and 138 of the State GST Rules cannot result in detention of goods, though they may have freedom to impose penalty – Hence detention of goods is without jurisdiction – Department directed to release the goods: