On grounds of
wrong route or undervaluation, goods in transit cannot be confiscated under
Central Goods & Services Tax (CGST) Act, said the Gujarat High Court
recently while hearing the petitioners whose vehicle and goods were seized, as
A Bench of the Court said there cannot be any
mechanical detention of a consignment in transit solely based on the two
reasons – wrong route and undervaluation.
Mere change of route not sufficient to draw an inference that the
intention was to evade tax
While quashing the entire confiscation
proceedings, it said that mere change of route without anything more would not
necessarily be sufficient to draw an inference that the intention was to evade
tax. In the same manner, mere undervaluation of the goods also by itself is not
sufficient to detain the goods and vehicle far from being liable to
confiscation, added the Bench, the reports said.