Goods caught by the authorities

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients who has undertaken a civil works contract and sent Iron and Steel goods directly from the supplier to the customer i.e bill to ship to basis u/s 10(1)(b) of IGST Act. Before which they have registered their site address as Site B instead of Site A inadvertently. Due to the site was not registered, the officer who detain the goods has collected the tax along with a penalty. On the very next day, after came to know the mistake, my client registered the correct site address i.e. Site A. Is there any case laws to cite while filing an appeal u/s 107 of GST Act, 2017.

Thanks in Advance.

[SOWMYA CA]

sir, I am not able to understand your question correctly. Could you throw more light on Site A and Site B.. Are these suppliers place of business or client's place of business. Why should the officer detain the goods when goods are transported Bill to Ship to model?

[CA Hemanth Kumar]

Is the query relating to goods detained due to error in e-way bill ?

[Ganeshan Kalyani]

It seems that Site was not registered as additional place of business in GST certificate and also there was an incorrect mentioning of Site B instead of Site A. As asked by experts colleague please elaborate your query. In my understanding the officer must have observed that address on e-way bill is of Site B and the material was going to Site A. Also, since the Site was not added in certificate the movement of goods is in contravention to provision of the Act. Pls also mention the section applied by the officer for levying penalty.

[Shilpi Jain]

It is no where stated in the law that the place where the goods are sent have to be a registered place of business.

The officers these days are harrasing the taxpayers on this ground and demanding tax and penalty.

If the order is uploaded on the portal you can file an appeal against it.

[KASTURI SETHI]

2021 (6) TMI 40 - COMMISSIONER (APPEALS) CENTRAL GOODS AND SERVICE TAX, JAIPUR IN RE : TAJ IRON STORE

 

[Ganeshan Kalyani]

Practical solution in EWB provision is not given. Say because of network connectivity issue if EWB could not be renewed then there is no provision as to how the rest of the journey be covered without EWB.

AI Summary

Goods detention for incorrect registered site: contestability depends on e-way bill/address discrepancy and appeal options under GST.
Detention followed incorrect listing of the recipient site as an additional place of business and mismatched e-way bill details during bill-to-ship-to movement of iron and steel; central issues are whether destination sites must be registered, whether e-way bill/address discrepancies justify tax and penalty, and the availability of appeals and reliance on cited administrative decisions when contesting detention and recovery.