penalty u/s 122(1) (ii) covered under 74(8)-?

[SUSHIL BANSAL]

Show cause notice for Fy 18-19 issued for supplying goods without eway bill proposing penalty u/s 122(1) (ii).

1. penalty as proposed u/s 122(1) (ii) can be covered under 74(8) ?.In my opinion it should not be.if under impression of 74(8) we deposited penalty@25% within 30 days of SCN (DRC-03 with the SCN No & 74(8) filed), whether we can claim refund & the proceedure thereof Further if department accepts our DRC then what?

2. in this client issued part-A but failed to issue part B, & the sales was local sales in motarised vehicles.If we submit all evidences ,account confirmation from the recepient also, then whether our case is out of 122(1) (ii) & in such a situation whether it will fall under general penalty u/s 125 & whether general penalty can be imposed as the SCN has no reference of Section 125.

3. In this case client did not issue eway bill of 6 invoices, whether the general penalty u/s 125 is per default or it will be single penalty of all such 6 defaults

 

AI Summary

Penalty under GST for supplying goods without e-way bill not covered by section 74(8); refund possible if no tax evasion.
Advisory states that Section 74(8) does not apply to penalties under Section 122(1)(ii) for failure to generate an e-way bill since that is a procedural lapse rather than tax evasion; if taxpayer proves no tax was evaded, refund of penalty may be claimed (even if DRC-03 is accepted) but refund and relief depend on a clean adjudicatory outcome. The Adjudicating Authority cannot impose a Section 125 general penalty unless that provision is invoked in the SCN, and penalties may be imposed offence-wise with possible leniency where there is no revenue loss.