2023 (8) TMI 1036

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... with sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 on 29.12.2022 and the following discrepancies were noticed. As per the invoice goods are transported from Chennai to Tiruppur. At the time of interception, goods are moving from Tiruppur to Chennai. It is presumed that goods are returnable due to unfructified sales. However in terms of sec 34 of the Act any goods returned due to unfructified sales it should accompanied with delivery challan/credit/debit note. In this case the taxable person has failed to issue the credit/debit note. Therefore, the goods under movement is treated as movement without document prescribed under sec 34 read with rule 55 of the Act thereby invoking sect 129 is warranted. Accordingly penalty under sec 129 of the Act is levied. 3. In view of the above, the goods and the conveyance used for the movement of goods were detained under subsection (3) of section 68 of the Central Goods and Services Tax Act, 2017 and sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 read with subsection (3) of section 68 of the State/Union Territory Goods and Services Tax Act, 2017 or under s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....py of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner." 9. It is submitted that invocation of Section 129(3) of the respective GST enactments was unwarranted. The reasons given in the detention notice was unsustainable and prayed for quashing of the notice. 10. The learned counsel for the petitioner would further submit that since the goods were at the risk of further getting deteriorated, the petitioner paid the penalty to salvage the wet and damaged goods back to the factory. 11. Arguing on behalf of the respondents, the learned Government Advocate would submit that payment having been made, the question of passing an order under Section 129(3) of the respective GST enactments did not arise in the light of the Section 129(5) of the respective GST enactments. 12. It is submitted that the petitioner had voluntarily paid the amount to by-pass the Show Cause Notice proceeding that was issued on 30.12.2022 in Form GST MOV-07. It is further submitted that in the Show Cause Notice dated 30.12.2022, the petitioner....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Toll at 5.56 PM The verification of the document produced by the incharge of the vehicle Luminous Power Technologies PVT LTD (33AAACS3561K1ZE) they raised tax invoice No.102233014804, 102233014805, 102233014806, 102233014807 dated 25.12.2022. On 28.12.2022 verification of the vehicle with reveals that, goods returned from Tirupur to Chennai. Mention that of 'E' way bill raised from same tax invoice no but reason of the transpiration (sic) for supply from Tirupur to Chennai. But reason of the transpiration goods return from Tirupur to Chennai. And not create the Credit note. On account of sales return by the buyer. Hence the tax payer fails to issue Credit note under sec 34 of SGST Act 2017 and Hence the tax payer intent to evade tax for the present movement of goods." 20. A reading of the above discrepancy that was noticed indicates that according to the Roving Squad, no Credit Note was issued for return of the goods that was being re-transported back to the petitioner's factory as is contemplated under Section 34 of the respective GST enactments. 21. Under Section 34(1) of the CGST Act, where one or more tax invoices have been issued for supply of any goods or se....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... reproduced below:- Section 129 of the CGST Act Rule 142(3) of the CGST Rule 129. Detention, seizure and release of goods and conveyances in transit (1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,- (a) on payment of the applicable tax and penalty equal to one hundred percent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two percent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty percent of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five percent of the value of goods or twenty....