Under valuation disputes in GST should be handled through assessment provisions, not detention when transport documents are complete.

Goods accompanied by invoice, e-way bill and goods receipt should not ordinarily be detained under Section 129 of the Uttar Pradesh GST Act merely because of alleged under valuation or a change in description, especially where the HSN code and tax rate remain the same. The proper course for an under valuation dispute is to proceed under the assessment and demand provisions, namely Sections 73 or 74, rather than use detention as a substitute for adjudication. The stated circular also reinforces that under valuation alone is not a normal ground for detention.

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Issues: Whether goods accompanied by invoice, e-way bill and other documents could be detained and penalty imposed under Section 129 of the Uttar Pradesh Goods and Service Tax Act, 2017 merely on the ground of alleged under valuation and change in description, and whether such issue had to be dealt with under the assessment provisions.

Analysis: The goods were found accompanied by the relevant tax invoice, e-way bill and goods receipt, and the HSN code as well as the rate of tax were the same. The detention was founded only on the physical verification that the goods were described differently, and a further plea of under valuation was raised before the appellate authority. The governing circular of the Commissioner, Commercial Tax, Uttar Pradesh, dated 9 May 2018 states that goods should not ordinarily be detained on the ground of under valuation. The proper course in a case of alleged under valuation is to proceed under Sections 73 or 74 of the Uttar Pradesh Goods and Service Tax Act, 2017, and not to invoke detention under Section 129 for that purpose.

Conclusion: The detention and consequential appellate order could not be sustained, and the petitioner's challenge succeeded.

Final Conclusion: The impugned order was quashed and the petitioner was entitled to refund of any amount deposited in the proceeding.

Ratio Decidendi: Where goods are accompanied by complete transport documents and the dispute is only about under valuation, the proper remedy lies under the assessment and demand provisions and not through detention under Section 129.

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