Court Buzz, GST

Transport of goods not a pretext to collect tax or penalty as there is no element of sale says Telangana HC.

Case: M/s. Same Deutzfahr India P Ltd vs State Of Telangana

Forum: Madhya Pradesh High Court


The Petitioner filed a Writ Petition contending that the detention of goods and recovery of GST and penalty by the Respondent is unsustainable and illegal.

Key points

The Hon’ble HC in its findings held that the Petitioner has additional place of business in the State of Telangana and the goods were being transported to that address from its Corpolate office in Tamil Nadu. Thus it cannot be said that the Petitioner.,was indulging in any illegal activity when the tax invoice shows that the Petitioner’s Corporate office is in Tamil Nadu. There was no reason for the Respondent to collect tax and penalty from the Petitioner on the pretext that there is illegality in the transport of goods as there is no element of sale of goods or services. The Respondents were thus directed to refund the tax and penalty collected to the Petitiioner

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