Court orders release of goods detained under GST Act due to invoice issue.

The Court ruled in favor of the petitioner, a distributor of home appliances, in a case challenging a detention notice under the GST Act due to non-consecutive serial numbers on tax invoices. The Court found that the suspicion raised by the authority regarding the invoice numbers did not justify the detention of goods that were accompanied by valid documentation. As the goods had proper tax invoices and e-way bills, meeting the requirements of the GST Rules, the Court directed the immediate release of the detained goods upon presentation of the judgment copy by the petitioner.

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Issues:
Detention notice under the GST Act due to non-consecutive serial numbers on tax invoices accompanying goods during transportation.

Analysis:
The petitioner, a distributor of home appliances, challenged Ext.P4 detention notice served while transporting goods. The respondent's objection was regarding the non-consecutive serial numbers on the tax invoices accompanying the goods. The detaining authority suspected the use of invoices with numbers in between for other goods not declared. The Government Pleader cited Rule 46(1)(b) of the GST Rules, emphasizing the requirement of tax invoices with consecutive serial numbers. The Court noted the power to detain goods in transit under Section 129 of the GST Act applies to contraventions. The person transporting goods must carry tax invoices and e-way bills as per Section 68 of the GST Act and Rule 138 of the GST Rules. Although the e-way bills and tax invoices were present, the issue was the non-consecutive invoice numbers causing suspicion of undeclared goods.

The Court found the doubt raised by the authority regarding the invoice numbers not justifying the detention of goods accompanied by proper documentation. The goods had valid tax invoices and e-way bills, meeting the requirements of Rule 46 of the GST Rules. The suspicion of using other invoices for undisclosed goods did not warrant the detention under Section 129 of the GST Act. The Court allowed the writ petition, directing the immediate release of the detained goods upon the petitioner presenting a copy of the judgment. The Government Pleader was tasked with informing the respondents to facilitate the prompt release of the vehicle and goods.

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