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Whether undervaluation can be a ground for the seizure of the goods in transit by inspecting authorities if otherwise all other aspects are in order?

Section 129 of the CGST Act, 2017 — Goods in Transit – The petitioner challenged the detention of the goods and conveyance and declining the release of goods under section 129 of the Act. The petitioner submitted that it is engaged in the business of trading of agriculture produce and supplied the Jeera Patti with the requisite documents. The invoice was accompanying with e-way bill. But still the respondent detained the goods. The respondent submitted that the reason for detention is that the goods shown in the invoice as Jeera Patti was in fact not Jeera Patti, but, the Premium Jeera having brand name of Shiv Pujari Jeera. The market value of which though shown as Rs. 13/- and Rs. 14/- per kg. it is, in fact, ranging from Rs. 150/- to Rs. 200/- per kg. The respondent sought four weeks for the assessment of the entire issue after drawing the sample from the goods detained. Held that:- The Hon’ble High Court directed the respondent to release the goods and the vehicle on the petitioner paying the amount of penalty and tax. The matter is listed on 16.12.2021.
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