The Madras High Court, while quashing a detention order by the State Tax Officer (Intelligence) has held that the power to issue such order is vested upon the jurisdictional tax officer under the GST regime.
The assessee, M/s. Macmet Engineering Limited approached the High Court contending that the jurisdictional Tax Officer would be the right person to decide the mistake and to be found whether there is loss of revenue or evasion of duty. In view of the error committed by the State Tax Officer (Intelligence), the assessee contended that the detention orders passed by the second respondent are liable to be quashed.
Justice M. Nirmal Kumar relying a catena of decisions, wherein it was held that if there is bona fide dispute, it is only the jurisdictional assessing officer to decide the issue and it is not by the Roving Squad Officers, observed that “looking from any angle and considering the nature of contract business, the only mistake committed by M/s. Phoenix Conveyor Belt India Private Limited is that, in the invoice, instead of ITD Cementation India Limited, the petitioner’s name is mentioned, except the said mistake, all other particulars properly recorded and 14 vehicles already reached the destination, five vehicles are in detention and 15 vehicles are in transit. It is seen that the petitioner already uploaded the particulars in the G.S.T. Portal even before the detention. The petitioner to produce all the documents to the jurisdictional assessing officer, give his explanation and it is for the assessing officer to see whether the triangular transaction ‘Bill to’, ‘Ship to’ is complete and thereafter, process the same.”
Quashing the order, the Court held that “In view of the above, this Court quashes the impugned detention orders alone and directs the second respondent to forward all the documents to the concerned jurisdictional assessing officer, who shall take up the issue and decide the same after giving opportunity to the petitioner. To safeguard the revenue, the petitioner to execute a bond for the demand and penalty raised. The jurisdictional assessing officer to decide the case on its own merits and pass appropriate orders.”
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