GST detention challenge: lack of reasoned appellate order and no apparent intent to evade tax raised serious concern.

Detention of goods under GST was challenged where tax invoices and an e-way bill accompanied the consignment, and the alleged defect was an incorrect origin entry in the e-way bill. The High Court recorded a prima facie view that the appellate authority had not given material-based reasons while rejecting the explanation, making the order appear unsustainable for want of reasons and supporting material. It also noted that no intent to evade tax had been made out on the stated facts. The order further noticed the grievance arising from the non-constitution of the appellate tribunal, which had driven assessees to approach the High Court directly.

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Issues: (i) Whether the appellate order rejecting the challenge to detention, seizure, tax and penalty was prima facie unsustainable for want of reasons and material. (ii) Whether the non-constitution of the appellate tribunal and the resulting remedy under the GST regime required consideration.

Analysis: The writ petition arose from detention of goods accompanied by tax invoices and e-way bill, where the alleged defect was the incorrect origin mentioned in the e-way bill. The order records a prima facie view that the appellate authority failed to discharge its statutory duty by not giving material-based reasons while rejecting the explanation, and that a case of intent to evade tax was not made out. The order also notices the grievance that the tribunal had not been constituted, leading assessees to approach the High Court directly.

Outcome: Notice was issued, counter affidavit was directed, and the matter was listed for further hearing along with connected matters.

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