Valuation report discredited, truck and goods released pending case.

The court found the valuation report lacking credibility and issued a Notice returnable on 3rd October 2019. As interim relief, the respondent-authorities were directed to release the truck and goods immediately, with the petitioners required to file an undertaking to pay the liability amount if they lost the case.

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Issues:
Detention of goods under section 129 of the Central Goods and Services Tax Act, 2017 based on undervaluation of an invoice.

Analysis:
The petitioners challenged the detention of goods under section 129(1) of the CGST Act, arguing that undervaluation of an invoice cannot be a valid ground for detention when all necessary documents as required by section 68 of the CGST Act and rule 138(A) of the rules have been provided. The advocate for the petitioners highlighted that the person in charge of the conveyance had the required documents and invoices. The court was informed about the report of valuation of the petitioner's stock prepared by a government registered valuer, which formed the basis for the respondents' decision to confiscate the goods.

Considering the submissions made by the petitioners' advocate and reviewing the valuation report dated 30.08.2019, the court found the report lacking in credibility. Consequently, the court issued a Notice returnable on 3rd October 2019. As an ad-interim relief, the respondent-authorities were directed to release the truck along with the goods immediately. However, the petitioners were required to file an undertaking stating they would pay the liability amount if they ultimately lost the case. Direct service of the order was permitted on the same day.

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