Goods Transported Without Proper Invoice & Documents Face GST Penalty, Upheld by HC

Fact and issue of the case

The petitioner has challenged the impugned proceedings of the 1st respondent dated 12.07.2023 bearing G.D.No.2905/2023-24, to quash the same and direct the 2nd respondent to release the detention goods as illegal and contrary to the provisions of the Tamil Nadu Value Added Tax Act, 2006.

The fact on record indicate that the vehicle bearing Registration No.TN 31 CD 0115 was intercepted by the officers of the 2nd respondent and statement from the Driver of the lorry was recorded. The statement recorded from the Driver of the lorry reads as under:

Observation of the court

I have considered the arguments advanced by the learned counsel for the petitioner and the learned Government Advocate appearing for the respondents.

Although the learned counsel for the petitioner would submit that the petitioner is willing to pay the duty. As far as the penalty is concerned, the learned counsel for the petitioner would submit that the petitioner may be relegated to work out the remedy before the Appellate Commissioner. Fact remains that the movement of diesel was not covered with proper invoice and transport document. In any event, the petitioner was liable to pay the tax under Tamil Nadu Value Added Tax Act, 2006, on the goods. Thus, there is really no concession in the offer made by the learned counsel for the petitioner.

At the same time, considering the fact that the product in the vehicle is diesel which is prone to inflammable, Court is inclined to order provisional release of the vehicle, subject to the petitioner paying the disputed tax that has been arrived in the impugned order and a further sum of Rs.1,00,000/- (Rupees One Lakh Only) towards security penalty imposed within a period of seven days from the date of receipt of a copy of this order.

The amounts to be paid by the petitioner pursuant to this order can be appropriated finally subject to final outcome of the proposed appeal to be filed by the petitioner. The petitioner shall also execute a bond to the satisfaction of the 2nd respondent within such period. Subject to the compliance of the conditions stipulated above, the above vehicle of the petitioner shall be provisionally released.

Accordingly, the Writ Petition stands disposed of with the above observations. No costs.