Buyer is required to establish his own credentials and not of the Seller: High Court

A welcome GST Ruling by HC.

Petitioner:

The 1st petitioner is the owner of the goods and 2nd petitioner is the owner of the vehicle in the above writ petitions and they seek writ of mandamus declaring the action of 1st respondent (revenue) in detaining their goods and vehicles while in transit with valid invoices as illegal.

Petitioners’ case is that:

1st petitioner purchased iron scrap from the 4th respondent under invoice and in turn sold the same to other party under valid invoice number.

The 1st petitioner engaged the vehicles of the 2nd petitioner for transporting goods from Vijayawada to Sankarampet and consignment was sent along with valid documents such as invoice, way bill, weighment slip etc.,

While goods were in transit the 1st respondent detained the vehicles along with the goods on the alleged ground that the vendor of the 1st petitioner i.e., the 4th respondent has no place of business at Vijayawada and accordingly issued impugned proceedings in the name of 4th respondent by deliberately ignoring the documents produced by the drivers at the time of check.

It is further case of the petitioners that the 4th respondent having sold the scrap has no interest and in case of default on his part, the 1st respondent may initiate action against the 4th respondent. However, under the guise of initiating proceedings against the 4th respondent, the 1st respondent cannot put the petitioners in trouble as long as the transaction is covered by all relevant and applicable documents.

Held:

:

Detention of Vehicle and Goods

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