Detention of goods due to non generation of E-invoice

[Guest]

In our case, goods are transported against the tax invoice and e-way bill. However, such an invoice is not raised in accordance with Rule 48(4) on the date of interception. But immediately a day after the issuance of the detention & Seizure order, an e-invoice was raised properly. so, in this case, what will be the grounds one could take for the release of goods without payment of penalty under section 129?

Thanks in Advance.

[Alkesh Jani]

Shri

As per the facts stated, my view is

As per rule 48(5), it can be said that goods were transported without invoice and detention is legally sustainable.

But as you have issued Invoice as per Section 31 of CGST Act, 2017, there is no intention to evade the payment of tax.

Moreover, corrosive action may be initiated for evasion of tax, and not for procedural lapse. Further, Section 31 and Rule 48 are mechanical (procedural) in nature and not charging section, where such strict interpretation is warranted.

There are judgments/decisions available, where penalty is not to be imposed is being underlined by the courts.

Help of our experts of this forum may also be taken.

Thanks

[Ganeshan Kalyani]

Your intention is not to evade tax. Officer intercepting the vehicle should see for e-way bill and invoice.

[Guest]

Dear Sir/Madam,

@Alkesh Jani requesting you to help me out in finding the case law for aforesaid ground.

[Alkesh Jani]

Shri Kumar ji,

The grounds to be contested are to be set as per the facts and circumstances of the case and it may differ from case to case.

However, as requested by you, please refer WP (MD) No. 5720 of 2022 Judgement /order passed by Hon'ble Madras High Court in case of Smart Roofing Pvt. Ltd Vs. State Tax Officer. - 2022 (4) TMI 241 - MADRAS HIGH COURT

I have also mentioned that help of our expert may be taken, i reiterate the same.

Thanks

AI Summary

Goods Detained for Missing E-Invoice Under Rule 48(4); Discussion on Release Without Penalty Under Section 129 A discussion on a forum addresses the detention of goods due to the non-generation of an e-invoice. The goods were transported with a tax invoice and e-way bill, but the e-invoice was not issued in compliance with Rule 48(4) at the time of interception. An e-invoice was generated the following day. Participants discuss the legal grounds for releasing the goods without penalty under Section 129, emphasizing that the situation was not an attempt to evade taxes but a procedural lapse. Reference is made to a relevant court decision, and further expert advice is suggested.