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of <h1>Transporter's Tax Invoice Mismatch Resolved: Section 129 Allows Correction with Reduced Penalty After Proper Documentation Verification</h1> HC ruled on tax declaration discrepancy under Section 129, where a transporter incorrectly declared tax on invoice and E-way bill. After acknowledging the ... Levy of penalty under sub-section (3) of Section 129 of GST Act - In the invoice accompanying the goods, the tax paid was shown to be under CGST & SGST, whereas it should have been shown as tax paid towards IGST - HELD THAT:- There will be an interim order directing the 1st respondent to verify monthly returns filed by the petitioner for the month of July 2022 and determine whether the amount in question was correctly shown as IGST instead of CGST/SGST. If the officer finds that the amount has been correctly shown as IGST in the monthly returns filed for the month of July 2022, notwithstanding the issuance of Ext.P13 order, the officer shall consider whether the mistake committed by the petitioner can be penalized by imposing a minor penalty. Let orders be passed by the 1st respondent as directed above on or before 25-08-2022. The petitioner shall produce a copy of the returns for the month of July 2022 before the 1st respondent. Issues:1. Imposition of penalty under Section 129 for incorrect tax declaration in goods transportation from Tiruppur to Kerala.Analysis:The petitioner was penalized Rs. 3,15,000 under Section 129 due to a discrepancy in tax declaration on the invoice and E-way bill. While the invoice showed tax paid under CGST & SGST instead of IGST, the E-way bill correctly reflected IGST payment. This inconsistency could lead to revenue loss for the State of Kerala, prompting the penalty imposition.The petitioner's counsel acknowledged the error and rectified it by issuing credit note/debit note and correctly reflecting the tax payment as IGST in the monthly return for July 2022. Considering these actions, an interim order was issued directing the authority to verify the July 2022 returns to confirm the correction. If the returns indeed show the correct IGST payment, the authority was instructed to reconsider penalizing the petitioner with a minor penalty instead.The petitioner was required to appear before the authority on a specified date for verification, and the authority was directed to pass orders based on the findings from the monthly returns by a set deadline. The petitioner was also instructed to provide a copy of the July 2022 returns for verification purposes.This judgment highlights the importance of accurate tax declaration in transportation transactions to prevent revenue loss and the possibility of penalties under relevant legal provisions. It also emphasizes the significance of promptly correcting errors and cooperating with authorities to rectify discrepancies in tax payments.
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