Court rules detention order under CGST Act appealable for proprietorship firm, emphasizes swift resolution

The court ruled in favor of the Revenue, emphasizing that the detention order under the CGST Act is appealable. The court directed the petitioner, a proprietorship firm engaged in agriculture and trade, to avail the remedy of appeal within two weeks for a swift resolution within four weeks. The court highlighted that disputed factual issues should be addressed by the Appellate Authority and disposed of the writ petition, urging the petitioner to pursue the appeal process for a comprehensive resolution.

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Issues:
Challenge to order of demand of tax and penalty under CGST Act, KGST Act, and IGST Act, detention order under CGST Act, demand notices for other reliefs.

Analysis:
The petitioner, a proprietorship firm engaged in agriculture and trade of areca nuts, consigned goods to a recipient in New Delhi. The consignment was intercepted in Karnataka, leading to a detention order under CGST Act. The petitioner claims compliance with tax laws and challenges the detention order.

The petitioner argues that as the owner of the detained goods, they paid 100% of the tax due, seeking relief under section 129(1)(a) of CGST Act. They rely on Circular No.76/50/2018-GST, stating that if the invoice accompanies the goods, the consignor should be deemed the owner. Previous court judgments are cited to support this argument.

The Revenue contends that the order is appealable, emphasizing that the goods were loaded in Karnataka, not Tamil Nadu. They argue that the tax invoice did not comply with CGST/KGST Act provisions, pointing to sections 2(66) and 31.

The court acknowledges the dispute over the ownership of goods and the loading location but notes that such factual issues are for the Appellate Authority to decide. The court cannot adjudicate on disputed facts when statutory mechanisms for redressal exist.

Regarding appealability, the court clarifies that the order is appealable under section 107 of the Act. The case does not fall under non-appealable matters listed in section 121. The court directs the petitioner to avail the remedy of appeal within two weeks, ensuring an expedited decision within four weeks.

In conclusion, the court disposes of the writ petition, urging the petitioner to pursue the appeal process for a comprehensive resolution of the dispute.

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