Detention for reason, – ‘the documents which were tendered are found to be defective’ is not good enough to levy tax and penalty. Which document is defective (whether it is e-way bill or the tax invoice/bill and supply/delivery challan) and why it is defective, shall be mentioned. If it is not mentioned, it is clear that the documents available with the driver were actually tendered to the detaining authority.
Taking a note of the dilly delaying tactic adopted by department and causing hardship on the right to do business, Hon’ble Telangana HC directed the department to refund the money along with interest @ 7% p.a.
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Important phrases of the decision are highlighted.