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Goods can’t be Detained for Mere Non-Compliance of GST Rules for Non-Taxable Supply

The Kerala High Court, in M/S Indus Towers Limited Vs. The Assistant State Tax Officer, held that the power of detention contemplated under Section 129 of the SGST Act can be exercised only in respect of goods which are liable to be confiscated under Section 130 of the SGST Act. 

While allowing the petition, Justice P.B Suresh Kumar clarified that goods cannot be detained merely for infraction of Rule 138(2) of the State SGST Rules when there is no taxable supply when goods are transported on delivery chalans so long as the authenticity of the delivery challan is not doubted and The petitioner-Company engaged in the establishment and maintenance of towers for telecom service providers, transported batteries under the strength of Tax Invoice. However, the Department officials detained the vehicle by invoking section 129 of the Act finding that the petitioner has not fulfilled the requirements of Rule 55 and 138 of the State GST Rules.

Article referred: http://www.taxscan.in/goods-detained-non-compliance-gst-rules-transaction-non-taxable-supply-kerala-hc/16725/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Taxscan+%28Top+Stories+%E2%80%93+Taxscan+%7C+Simplifying+Tax+Laws%29

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