Court: Mis-classification not grounds for detention under GST Act Section 129. Release goods, vehicle to petitioner.

The Court held that detaining goods solely on the basis of alleged mis-classification is unjustified under Section 129 of the GST Act. The proper procedure involves physical verification, objection recording, and assessment by the Assessing Officer. Consequently, the Court quashed the notice of detention and ordered the immediate release of goods and the vehicle to the petitioner, subject to his objections on the verification report. The Government Pleader was directed to notify the respondents for prompt action, and the petitioner to provide necessary documents to the respondents.

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Issues: Detention of goods under Section 129 of the GST Act based on alleged mis-classification

Analysis:
The petitioner challenged the Ext.P7 notice of detention served on him under Section 129 of the Goods and Service Tax Act due to the alleged mis-classification of goods being transported. The petitioner argued that mis-classification should not be a reason for detaining goods under Section 129 of the GST Act.

The Court heard arguments from both parties and considered the facts and submissions. It was observed that the detention of goods based solely on the allegation of mis-classification is unjustified under Section 129 of the GST Act. The Court emphasized that if there are concerns regarding mis-classification, the proper procedure would be for the authorities to conduct a physical verification, prepare a report, allow the petitioner to record objections, and forward the report to the Assessing Officer for consideration during assessment.

Consequently, the Court quashed the Ext.P7 notice and directed the immediate release of the goods and the vehicle to the petitioner. The release was subject to the petitioner's signature or objections recorded on the report prepared by the authorities after physical verification. The Government Pleader was instructed to inform the respondents about the order for prompt action. The petitioner was directed to provide a copy of the writ petition and judgment to the respondents for further necessary steps.

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