• Dated 15th January, 2022
Tax Alert

GST update on a recent Judgement towards detention of goods in transit.

GST update:-

M/s Karnataka Traders Vs State of Gujarat*

In the given judgement, goods and vehicle was detained in transit on two ground i.e. undervaluation of goods and vehicle was travelling to different direction than the direction of destination.

Writ petition was filed against the confiscation notice.

Hon'ble Gujarat High Court held that vehicle and goods to be released at the earliest as:

  • Goods cannot be confiscated on ground of under valuation and department should initiate separate proceedings.
  • Mechanical detention of consignment is impermissible because the driver opted for different route.