The Kerala High Court recently allowed a petitioner to release the goods detained by furnishing Bank Guarantee and a bond for the value of goods as prescribed under Rule 140(1) of the Central Goods and Services Tax Rules, 2017.
The petitioner, engaged in works contract, purchased material from Ghaziabad. However, the department detained the vehicle as the e-way bill did not contain the details of the vehicle used for the transport. The petitioner approached the High Court through the writ petition praying for the release of goods.
While disposing of the petition, Justice Dama Seshadri Naidu noted that the Division Bench of this Court in Renji Lal Damodaran Vs. State Tax Officer 1 dealt with an identical issue wherein the Court allowed the release of goods according to the Rule 140(1) of the CGST Rules.
“Applying the ratio of that judgment, I direct that respondent authorities to release the petitioner’s goods and vehicle on his “furnishing Bank Guarantee for tax and penalty found due and a bond for the value of goods in the form as prescribed under Rule 140(1) of the CGST Rules,” the Court said.
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