M/s Golden Traders & Ors. v. Deputy Assistant Commissioner of State Tax & Ors.

Whether Goods in Transit Can Be Detained Under GST Merely on Allegation of Undervaluation?

Introduction

This landmark judgment delivered by the High Court addresses an important issue concerning the powers of GST authorities during interception and detention of goods in transit. The Court examined whether officers exercising powers under Sections 129 and 130 of the CGST Act, 2017 can investigate disputes relating to valuation of goods and detain goods merely because they suspect that the goods are undervalued.