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Goods can’t be detained on speculation that they are undervalued; HC slams penalty imposed by GST officer
THE HON’BLE ALLAHABAD HIGH COURT IN THE CASE OF SHAMHU SARAN AGARWAL & COMPANY V/s ADDITIONAL COMMISSIONER GRADE-2, decided on 31-1-2024
👉 Issue:-
✔️ Is it justified if penalty is imposed and detention of goods was based solely on perceived undervaluation by Revenue Authority?
👉 The Hon’ble High Court Judgement:-
✔️ Where detention of goods was based solely on perceived undervaluation by Revenue without following statutory procedures, such detention lacked validity and could not justify penalty imposition U/Sect 129 of CGST Act, 2017. If under-valuation was suspected, procedures U/Sec 73 or 74 of CGST Act must be followed
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