Court Nullifies Detention & Penalty Orders; No Tax Evasion Intent Found in M.S. Scrap Purchase Under CGST Act.

The HC allowed the writ petition, setting aside the detention and penalty orders against the petitioner who had purchased M.S. scrap with all necessary documents. The court found no intent to evade tax under Section 129(3) of the CGST Act. The respondents were directed to refund the recovered amount within four weeks.

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Issues involved:
The present writ petition challenges physical inspection, detention order, penalty order, and other proceedings initiated against the petitioner.

Details of the Judgment:

Issue 1: Detention of Goods
The petitioner purchased M.S. scrap and had all necessary documents, yet goods were detained due to the absence of consigner's address. The detention order was challenged as the petitioner had already paid tax, and intent to evade tax is mandatory for invoking Section 129(3) of the CGST Act. The court referred to relevant judgments and held that carrying requisite documents absolves the petitioner from tax evasion allegations.

Issue 2: Alternative Remedy
The respondent argued that the petitioner should have pursued an appeal instead of a writ petition. However, the court noted the settled law that no special purpose would be served by delegating the matter to the appellate authority, and hence allowed the writ petition, setting aside all impugned proceedings.

Relief Granted
The court directed the respondents to refund the amount recovered from the petitioner within four weeks and disposed of the writ petition with the above directions.

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