R. G. Group Vs Union of India (Tripura High Court)
The Tripura High Court addressed a writ petition filed by R. G. Group challenging the levy and collection of penalty under Section 129 of the Tripura State Goods and Services Tax (GST) Act, 2017, related to the detention of a consignment of electrical goods. The goods were detained on 9th July 2024 at Bagma, Gomati, Tripura, by the concerned GST authorities. Following the detention, the officials issued Forms GST MOV-01 and MOV-02 alleging that the person-in-charge of the consignment tendered expired E-Way Bills and that there was a mismatch with the vehicle.
The petitioner contended that a physical verification conducted on 10th July 2024, recorded in Form GST MOV-04, found no discrepancies between the physical goods and the corresponding E-Invoices or the E-Way Bills. Despite this, the authorities issued a detention order in Form GST MOV-06 the same day, reiterating the allegations of expired E-Way Bills and vehicle mismatch. A show-cause notice was subsequently issued on 11th July 2024 under Form GST MOV-07, proposing a penalty of Rs. 4,96,850 under Section 129(1), without providing a bifurcation of penalty calculations under Sections 129(1)(a) and 129(1)(b).
The petitioner responded with a letter on 16th July 2024 under Section 160(2), requesting a copy of EWB-03 Part A and B, citing Circular No.41/15/2018-GST. A detailed reply was submitted on 18th July 2024, raising objections including: the non-uploading of EWB-03 Part A and B on the common portal; production of supplier GSTR-1 copies reflecting all invoices; and verification in MOV-04 confirming no mismatch between invoices and physical goods. The petitioner requested that the allegation of tax evasion be dropped.
