Court quashes goods detention due to invoice discrepancies, emphasizing GST Act aim.

The court quashes the notice detaining goods due to discrepancies in invoice value and HSN code entry, finding the reasons provided insufficient under Sections 129 or 130. Emphasizing the GST Act's aim to enable free movement of goods, the court criticizes arbitrary detentions affecting public confidence in the tax system and economy. The petitioner's goods are ordered for immediate release, with instructions given to prevent similar unjustified detentions in the future.

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Issues:
Challenge against Ext.P2 notice for detention of goods due to low invoice value compared to MRP and alleged wrong HSN code entry.

Analysis:
The Writ Petition challenges Ext.P2 notice detaining goods of the petitioner in a parcel godown based on discrepancies in the invoice value and HSN code entry. The petitioner argues that the reasons in Ext.P2 do not warrant detention under Section 129 or 130, seeking immediate release of the goods. Upon hearing both parties, the court finds that none of the reasons in Ext.P2 justify the detention. It is noted that the GST Act does not mandate goods to be sold at prices above MRP, and there is no indication that the alleged wrong classification affected the tax rate. The court emphasizes the GST Act's intent to facilitate free movement of goods after self-assessment by taxpayers, criticizing arbitrary detentions that undermine public confidence in the tax system and the economy. Consequently, the court quashes Ext.P2 detention order and orders immediate release of the goods upon production of the judgment. Additionally, the Commissioner is directed to issue instructions to prevent such unwarranted detentions in the future, with the Registry tasked to inform the Commissioner for necessary action.

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