The Madras High Court directed the GST Authority to release vehicles subject to payment of the applicable GST.
The petitioner, Tvl.PANINDIA Tubes Private Limited has a unit in Thuvakudi in Trichy and had placed an order from a supplier namely Sreevatsa Tube Corporation, Chennai for supply of goods who had raised GST invoice on 03.11.2021 and had consigned the consignments to the petitioner’s place of business at Thuvakudi in Trichy and billed/invoiced the Petitioner’s Head Office/Registered Office in Telangana.
The petitioner submits that the supplier has also charged applicable IGST (Integrated Goods and Services Tax) as there was an inter-state supply.
The learned counsel for the petitioner further submits that the respondent has seized the vehicle as the E-way bill which accompanied the goods had expired before the goods could be delivered and meanwhile the vehicle developed some technical snag. It is submitted that both the goods and vehicle have been seized. He therefore submits that the respondent will be directed to release the vehicle.
The single bench of Justice C.Saravanan prima facie held that the petitioner is liable to pay SGST & CGST as the supply is within the State from Sembudoss Street, Chennai of the supplier to the petitioner at Thuvakudi in Trichy, though the bill has been sent to the petitioner’s Head Office/Registered Office in Telangana.
“Considering the same, the respondent is directed to release the vehicle subject to payment of the applicable SGST and CGST by the petitioner to be treated as deposit. The respondent shall issue appropriate notice to the petitioner to show cause as to why SGST and CGST directed to be deposited should be demanded and why penalty should not be imposed on the petitioner. It is made clear that the amount to be paid by the petitioner shall be treated as deposit amount against the liability that may be confirmed by the respondent and its appropriation will be subject to the outcome of such proceeding,” the court said.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
