TaxTMI 
TaxTMI 
2023 (2) TMI 542
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.... the vehicle. 2. The petitioner before this Court is a registered dealer under the Haryana State Goods and Service Tax Act, 2017 (hereinafter called as "GST Act of 2017"). He is in the business of manufacturing and sale of Pan Masala and Chewing Tobacco. 3. The petitioner, who had received orders for supply of Pan Masala and Chewing Tobacco from two registered dealers of State of Jharkhand namely M/s ASP Enterprises and M/s Alliance Trading Company, Ranchi (Jharkhand) was sending the goods, as claimed, through four Tax Invoices. Through the Tax Invoice No.RFTB/18- 19/9 dated 02.02.2019, 30 Cartoons Chewing Tobacco for a sum of Rs.47,465/-, which included discount, Integrated G.S.T. and Cess and Tax Invoice No.RF/18-19/10 dated 02.02.2....
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....the basic value came to Rs.6,12,766 while the value on both the invoices was declared collectively Rs.69,600/-. 5. On 06.02.2019, a show cause notice in Form MOV 07 was issued. A detailed reply was filed on 13.02.2019 wherein it was mentioned that tax invoices in respect of tobacco were misplaced by the driver and could not be produced at the time of interception of goods. The value of 30 cartoons of tobacco was Rs.47,465/- each being sent to M/s Alliance Trading Co. and M/s ASP Enterprises. The question as to the jurisdiction of State of Uttar Pradesh in intercepting the goods and detaining the same was also raised. The dealer also submitted explanation that he has recently started the business and with a view to promote his business, h....
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....to him, the tax invoices for tobacco was generated along with tax invoices of Pan Masala on 02.02.2019 but due to the fault of the driver, the same was not produced before the detaining authority and was submitted at the time the reply given to the notice. According to him, the mandatory requirement of carrying E-Way bill as per Rule 138 is only when the goods are valued at Rs.50,000/- or more. 9. In the instant case, as the goods of Pan Masala and Tobacco, which were sent to two different consignees, were less than Rs.50,000/-, no necessity arose to download them. 10. He then contended that as the dealer had started his business only in the year 2018 and to compete in the Pan Masala segment, he was offering huge discount and the pric....
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....which were being transported. Subsequently, the dealer has come with the case that driver had misplaced the documents and they were submitted at the time of furnishing an explanation. 14. From perusal of the tax invoices, appended alongwith writ petition, it transpires that price disclosed for each Cartoons of Pan Masala is Rs.1,160/- and total cost of 30 Cartoons sent to each of the dealers comes to Rs.34,800/- wherein 25% discount i.e. Rs.8,700/- has been given. Further, addition of IGST and Cess has been done at 28% and 60% respectively. Thus, the total cost comes to Rs.49,068/- for each of the tax invoices generated for a particular consignee for 30 Cartoons, which is well below the threshold limit of Rs.50,000/- necessitating downlo....
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....s, the value came to Rs.10,240/- after giving 25% discount. The disclosure by the dealer per Cartoon was only Rs.1,160/- and thus after giving trade discount and addition of taxes, the value was brought down to the threshold limit of Rs.50,000/-. 18. The Taxing Authorities, on fair valuation, found that the goods, which were in transit both Pan Masala and Tobacco accounted for Rs.7,12,766/- while the proper disclosure was not made by the dealer. It was on this undervaluation of goods that the authorities proceeded and imposed IGST and penalty. 19. The very purpose of downloading E-Way bill is that every goods, which are in transit, is recorded in the Web Portal and the Government has a clear picture of the goods which are manufactured....
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....on of Chhattisgarh High Court in K.P.Sugandh Ltd. Bilaspur vs. State of Chhattisgarh and others 2020 TLD 103; decisions of Kerala High Court in Alfa Group vs. The Assistant State Tax Officer and others 2020 UPTC (Vol.104)-74 and Sameer Mat Industries vs. State of Kerala (2018) 36 VLJ 120 (Ker) are distinguishable on the facts of the case and cannot be relied upon. 24. 60 Cartoons of Pan Masala contained 3,84,000 pouches. The printed price on each pouch is Rs.4/-. Accordingly, the total value of goods is Rs.15,36,000/-. The detaining authority, after giving discount of 25% and deducting the tax and Cess, arrived at the basic value at Rs.6,12,766/-. If the argument of petitioner's counsel is taken to be correct that the dealer was new ....