2023 taxo.online 740

Part 1: Introduction:

The case involves the detention and potential confiscation of goods by the revenue authority under the Central Goods and Services Tax (CGST) and Andhra Pradesh Goods and Services Tax (APGST) Acts. The issue centers on whether the revenue authority can confiscate goods of the petitioners based solely on proceedings initiated against another party, the 4th respondent.

Part 2: Appellant's Contentions and Legal Basis:

The 1st petitioner, a trader, purchased iron scrap from the 4th respondent and sold it to a third party. The goods were detained during transit by the revenue authority, claiming the 4th respondent lacked a genuine business address and had obtained registration fraudulently. The petitioner argued that they verified the 4th respondent's GST registration on the official web portal before purchase. They contended that they should not be held responsible for the 4th respondent's actions and that the authority's proceedings should be initiated against them under Section 129, not 130, of the CGST/APGST Acts.

Part 3: Court's Analysis and Ruling:

The court analyzed Section 68 of the CGST/APGST Act, which grants authority to detain goods in transit. It distinguished between Sections 129 and 130, highlighting that detention aims to recover……..

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