Penalty for Detention of Goods Upheld Due if assessee had not claimed ownership of the goods  within 15 days 

Penalty for Detention of Goods Upheld Due if assessee had not claimed ownership of the goods  within 15 days

Issue: Whether the penalty imposed under Section 129 of the GST Act for detention of goods in transit is justified when the assessee failed to take timely action to claim ownership of the goods and provide necessary documentation.

Facts:

• The assessee’s vehicle carrying goods was detained, and a penalty was imposed under Section 129.
• The assessee argued that the goods were being moved from their parking yard and did not require an e-way bill.
• The assessee claimed that their submissions regarding ownership of the goods, based on a passed award and hypothecation of the vehicle, were rejected.

Decision:

• The court upheld the penalty imposed under Section 129.
• The court noted that the assessee had 15 days to claim ownership of the goods but failed to take any action.
• The assessee’s casual approach and belated assertions in the petition were not considered reliable.
• The court dismissed the petition, emphasizing the assessee’s inaction and failure to provide necessary documentation within the stipulated time.

Key Takeaways:

• This case highlights the importance of timely action and compliance with GST regulations, especially in cases of detention of goods in transit.
• Assessees must proactively claim ownership of goods and provide supporting documentation within the given timeframe.
• Failure to do so can lead to penalties and rejection of their claims, even if they have valid grounds.
• This decision underscores the need for diligence and promptness in responding to GST notices and complying with procedural requirements.