State of Karnataka Vs Aam India Manufacturing Corporation Private Limited (Karnataka High Court)
The Karnataka High Court considered an intra-court appeal filed by the State challenging the order of the learned Single Judge dated 19.01.2023 in W.P. No.16845/2022 (TIS). The Single Judge had quashed the appellate authority’s order dated 16.03.2022, modified the ex parte order dated 09.11.2020 by restricting the penalty payable by the petitioner to ₹25,000, and directed refund of the remaining amount deposited by the petitioner within six weeks. The State challenged this order.
Material Facts and Procedural Background
The respondent purchased hydraulic fixtures and tooling body machines in July 2020, which were delivered to its unit at Ahmednagar, Maharashtra. After certain customisation, the respondent transported the machinery back to the seller at Coimbatore for testing. The movement was under delivery challans but without e-way bills.
The Commercial Tax Officer intercepted the vehicle on 03.11.2020 and issued a detention order in Form GST MOV-06 along with a notice in Form GST MOV-07 under Section 129(3) of the CGST Act. The respondent deposited the tax and penalty demanded. Thereafter, an ex parte order dated 09.11.2020 confirmed the demand of IGST and penalty. The respondent’s appeal under Section 107(11) of the Karnataka Goods and Services Tax Act, 2017 was disposed of by order dated 16.03.2022. The respondent then filed a writ petition, which was allowed by the learned Single Judge, leading to the present appeal by the State.
