Detention Order to Be Quashed as Documents Showed Proper Chain of Transaction From Manufacturer to Consignee | HC

Case Details: Bdg Concast v. State of U.P. - [2024] 167 taxmann.com 431 (Allahabad)

Judiciary and Counsel Details

• Shekhar B. Saraf & Manjive Shukla, JJ.
• Vishwjit, for the Petitioner.

Facts of the Case

The department detained goods of petitioner on the ground that correct documents were not travelling with the truck. The petitioner was aggrieved by the detention order and also consequential notices issued subsequent to the said detention order. Therefore, the petitioner filed writ petition against the detention order.

High Court Held

The Honorable High Court noted that the order in Form GST MOV -06 being the detention order stated that no documents had been produced to indicate how the petitioner purchased the said goods which were being sold to another party. The Court further noted that in the instant case, the documents annexed to the writ petition clearly showed chain of transactions from manufacturer to petitioner to consignee. The goods were sold by the Steel Authority of India Ltd. to Balaji Enterprises and subsequently, Balaji Enterprises sold the goods to petitioner.

Therefore, it was held that there was no justification for the detention carried out by the authorities and the detention order was liable to be quashed and the authorities were directed to refund the security amount deposited for the release of goods.