2024 (9) TMI 1704 - HC - GST

Landmark GST Ruling: Detained Goods Released, Authorities Ordered to Reassess Valuation Based on Invoice Pricing

HC allowed writ petition challenging goods detention under GST Act. Court directed release of goods based on invoice value and ordered authorities to ... Detention of the goods and vehicle of the petitioner - whether the goods may be released by the authorities under Section 129(1)(a) of the CGST Act read with IGST Act on value of goods mentioned in invoice? - HELD THAT:- The goods would have to be released in terms of Section 129(1)(a) of the CGST Act read with IGST Act on the value of goods mentioned in invoice. The order passed by the authorities dated September 1, 2024 is quashed and set aside. The respondent authorities are directed to carry out the exercise in terms of Section 129(1)(a) of the CGST Act read with IGST Act within a period of three weeks from today on the basis of valuation as specified in the invoice. Petition allowed. The High Court of Allahabad, in a writ petition filed under Article 226 of the Constitution of India, challenged the detention of goods and a vehicle by respondent authorities under the Central Goods and Services Tax Act, 2017. The main issue was whether the goods could be released based on the value mentioned in the invoice. The petitioner argued for release based on invoice value, citing relevant case law. The respondent authorities defended their actions. The Court, after reviewing the arguments and case law, held that the goods should be released based on the invoice value, quashing the authorities' order and directing revaluation within three weeks. Other prayers in the petition were not pursued. The writ petition was allowed.