Case Law Details
Mohammad Shamasher Vs State of West Bengal & Ors. (Calcutta High Court)
Introduction: In a significant legal development, the Calcutta High Court rendered a pivotal judgment in the case of Mohammad Shamasher vs. State of West Bengal & Ors., challenging penalties imposed under Section 129 of the State Goods and Services Tax (GST) Act. The case revolves around the detention of an escalator machine (JCB) and subsequent penalties for alleged violations.
Detailed Analysis: The petitioner, the sole proprietor of M/s Afika Infrastructure, faced penalties under Section 129 (3) of the State GST Act for the vehicle’s interception without proper documentation. The court delved into the intricacies, emphasizing that the respondent authority lacked the power to evaluate tax amounts under Section 129 proceedings. Notably, the court highlighted alternative penalty provisions under Section 122 and stressed the importance of compliance with Sections 73 and 74 for tax determination.
The petitioner argued the machine’s valid e-way bill, asserting that no tax was payable upon its return after completion of work. Legal references, including judgments from Uttarakhand, Allahabad, and the Calcutta High Court, were cited to support the contention that procedural improprieties shouldn’t result in disproportionate penalties.
Conclusion: The High Court, acknowledging the valid e-way bill but emphasizing the absence of a delivery challan, set aside the penalties. The judgment underscored that the petitioner’s lack of intent to evade tax made the 200% penalty disproportionate. The court directed the adjudicating authority to reassess the case in line with the discussions, promoting a fair and reasoned decision within eight weeks.
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