Mohammad Shamasher Vs The State of West Bengal & Ors. (Calcutta High Court)
Calcutta High Court in Mohammad Shamasher v. The State of West Bengal & Ors. upheld a penalty imposed under Section 129(3) of the GST Act, ruling that a mismatch between the e-way bill and delivery challan suggested an intent to evade tax. The case involved the detention of a JCB machine, where the driver failed to produce the required tax invoice or delivery challan. The authorities found discrepancies between the consignor mentioned in the e-way bill (an unregistered person) and the delivery challan (issued by a registered entity). A penalty of 200% of the tax payable was imposed, which was challenged by the appellant.
The Single Judge initially remanded the matter for reconsideration, stating that the penalty was imposed due to non-production of documents and that there was no intent to evade tax. However, upon review, the adjudicating authority reaffirmed the penalty, citing the mismatch as evidence of an attempt to conceal the identity of the actual service recipient. The appellant argued that the mismatch was inadvertent and that the adjudicating authority exceeded its mandate by reassessing intent.
The Division Bench ruled that the adjudicating authority had the power to examine mismatches and their implications. It found that the inconsistency was not accidental but an attempt to hide the identity of a registered recipient and evade GST. The court emphasized that GST laws must be strictly interpreted to prevent tax avoidance. Citing judicial precedents, Mohammad Shamasher Vs State of West Bengal & Ors, (Calcutta High Court) WPA 85 of 2024 Dated: 01.02.2024, the court reiterated that discrepancies in tax documents could justify penalties.
