GST - False description of goods in a memo - Logitax

GST – False description of goods in a memo

Case Details : GST- Detention of goods - False description of goods in a memo

Case Related To : Shrimali Industries Pvt Ltd

Declared By : Rajasthan High Court on 18th August 2022

What Happened Exactly :

  1. The petitioner’s goods were detained by the department as aluminum sections were being transported in the vehicle and it was falsely shown to be Aluminum scrap.
  2. It was found that the documents, which were being carried in the vehicle, were with a patently fraudulent declaration that the goods under transit were Aluminum scrap whereas actually, brand new Aluminum Sections wrapped in protective plastic packaging material was being transported.
  3. The rate of the scrap as denoted in the E-Way Bill was a mere Rs.6,42,600/- whereas, the rate of new Aluminum sections weighing 6300 Kgs. would be Rs.11,02,500/-.
  4. The petitioner contends that mere suspicion of misclassification of goods cannot be the basis for detention under Section 129 of the CGST Act and that’s why has filed this case.

Court's Decision :

  1. By portraying the goods in transit as Aluminum scrap in the documents, the petitioner indulges in blatant evasion of GST.
  2. By no stretch of imagination, can brand new Aluminum sections be placed on equivalence with Aluminum scrap. Thus, the goods in question were fraudulently described as Aluminum scrap and hence, the respondent authorities were perfectly justified in detaining the petitioner’s vehicle and the goods after noticing this blatant misdescription during interception.
  3. Further, the show cause notice is appealable under Section 107 of the CGST Act and hence, the instant writ petition is not maintainable.
  4. Writ petition is dismissed.

Know more about us...

Address :
Akar Bungalow, 25/10, Road: Deep Jyoti Colony, Hingne Budrukh, Karve Nagar, Pune, Maharashtra 411052.
Contact us :


certificate-secure 1

Copyright © 2023 Ankekshan Consulting Pvt. Ltd. All rights reserved | LogiTax is a product by Ankekshan Consulting Pvt. Ltd.