Jai Enterprises Vs Pankaj Gandhi (GSTAT Lucknow)
Summary: The appeal was filed under Section 112 of the Central Goods and Services Tax Act, 2017, read with the corresponding provisions of the Uttar Pradesh Goods and Services Tax Act, 2017, against an order dated 11.10.2023 passed under Section 129(3) of the CGST/UPGST Act, 2017 and the consequential order of the First Appellate Authority in Appeal No. KNP/04/0040/2022. The Tribunal records no Assessment Year in the supplied order.
The goods were being transported by vehicle No. UP-71-B-9301 from M/s. Jai Enterprises, Nayaganj, Kanpur, to Fatehpur. Invoice Nos. 14259 and 14260 and E-Way Bill Nos. 431234391202 and 481234390936 were dated 01.03.2022. The SGST Mobile Squad checked the vehicle at Jhakarkatti, Kanpur at 01:27 p.m. and scanned the E-Way Bills. At 09:52 p.m., the Mobile Squad again checked the vehicle at Jhakarkatti. From the earlier verification, the officer inferred that the documents were being reused for another transaction to evade tax.
A notice under Section 129 was issued. After rejection of the owner’s reply and valuation of the goods at Rs. 2,65,650.00, a total demand of Rs. 6,06,844.00 was created, including penalty of Rs. 74,382.00 and cess penalty of Rs. 4,58,080.00. The First Appellate Authority rejected the appeal, reasoning that the documents were being reused and that the explanation of vehicle breakdown was an afterthought.
