Court affirms GST Tribunal's broad jurisdiction, petitioner's right to appeal, and directs re-examination of tax assessment

The Court held that the jurisdiction of the C.G.S.T. Tribunal extends to both legal and factual issues under Sections 112(3) and 113(1) of the Act. The petitioner's right to approach the Tribunal cannot be denied, emphasizing the statutory remedy available. Regarding the detention and seizure of goods, the Court found discrepancies in the authorities' assessment of tax liability and penalty, directing a proper examination of the defense raised by the assessee. The impugned orders were quashed, and the petitioner was directed to appear before the officer for further assessment within a specified timeframe.

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Issues:
1. Jurisdiction of the C.G.S.T. Tribunal under Section 112(3) and 113(1) of the Central Goods and Services Tax Act, 2017.
2. Detention and seizure of goods under Section 129 of the Act.
3. Assessment of tax and penalty on detained goods.
4. Examination of the defense set up by the assessee regarding the nature of the transaction and liability to pay tax.

Jurisdiction of the C.G.S.T. Tribunal:
The petition was filed under Article 226 of the Constitution against the order passed by the Proper Authority and first appellate authority due to the absence of a G.S.T. Tribunal in Uttar Pradesh. The petitioner argued that the statutory right to approach the Tribunal cannot be denied once the Act is enforced. Reference was made to Section 112(3) and 113(1) of the Act, emphasizing that appeals before the Tribunal are not limited to legal questions but also include factual issues. The Court was urged to protect the petitioner's rights concerning the statutory remedy available before the Tribunal.

Detention and Seizure of Goods:
A transport vehicle was detained for violating Rule 138 of the G.S.T. Rules. The petitioner claimed that the E-way bill was mistakenly generated and provided a correct bill indicating the machine was for job work. The assessing authority found tax unpaid and imposed penalties, affirmed in appeal. The petitioner contended that the authorities failed to consider the job work execution and the consequent tax liability properly.

Assessment of Tax and Penalty:
The Act allows detention and seizure of goods in transit for contraventions, with release upon payment of applicable tax and penalty. The proper officer must issue a notice specifying the payable tax and penalty and then pass an order for payment. The petitioner argued that no tax liability had arisen as the job work was pending and no payment received, which the authorities allegedly did not consider. The Court noted discrepancies in the description of goods in the E-way bill and the claim of job work execution.

Examination of Defense by Assessee:
The petitioner's claim that the machine was for job work and not for sale was not properly examined by the authorities. The tax invoice was from 2018, and the petitioner's defense was not adequately addressed. The Court found that the proper officer did not assess the tax liability properly, quashing the impugned orders and directing the petitioner to appear before the officer for further examination. All factual issues were left open for proper determination by the officer within a specified timeframe.

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