T.P.Metals & Roofings Vs Assistant Tax Officer (INT) (Kerala High Court)
Kerala High Court held that imposition of tax/penalty under section 129 of the CGST / SGST Act in case of only minor discrepancies unjustified. Penalty can be imposed only for violations which may lead to evasion of tax.
Facts- The petitioner is a registered dealer under the CGST/SGST Acts and is engaged in the sale of roofing sheets, pipes etc. According to the petitioner, it sold 12,080 Kg of roofing pipes to M/s. Koyasons Building Materials Pvt. Ltd, Palakkad. The goods were then despatched to the purchaser along with the Tax Invoice and e-way bill dated 23.10.2021. The vehicle in which the goods were being transported was intercepted by the 1st respondent on 25.10.2021 at 09:59 A.M. at Melmuri, Malappuram, and on the finding that the e-way bill referred to above had expired on 24.10.2021 proceedings were initiated against the petitioner under Section 129 of the CGST/SGST Acts. The proceedings culminated in order imposing upon the petitioner the liability to pay tax and penalty totalling Rs.3,76,824/-.
Conclusion- This Court in Podaran Foods India Pvt. Ltd held that the detention of goods while in transit cannot be justified unless there is a possibility of tax evasion.
