TaxTMI 
TaxTMI 
2024 (2) TMI 288
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The driver of the vehicle failed to produce any document in support of movement of the goods, i.e, the JCB machine. On account of the said offence order of detention under Section 129 (1) of the State Goods and Services Tax Act, 2017 was issued. The authority alleged that the provision of Section 68 (1) of the Act was violated. The petitioner was directed to pay penalty under Section 129 (3) of the Act. 2. The adjudicating authority passed order against the petitioner. An appeal was carried there from before the appellate forum which too stood rejected. The petitioner has been held liable for payment of penalty of a sum of Rs. 9,93,008/- for contravention of the provision of the Act and the Rules made thereunder. The petitioner has execut....
X X X X Extracts X X X X
X X X X Extracts X X X X
....admitting, that penalty could have been charged, the same ought not to be more than Rs. 25,000/- only as the goods in question was not eligible for payment of tax. For a minor breach of not possessing the delivery challan, such heavy amount of penalty at the rate of 200% ought not to have been imposed. 6. In support of the aforesaid submission the petitioner relies upon the judgment delivered by the High Court of Uttarakhand in Prestress Steel LLP vs. Commissioner, Uttarakhand State GST reported in (2013) 157 taxmann.com 112 (Uttarakhand), order dated 16th June, 2023 passed by the Hon'ble Division of this Court in MAT 1032/2023 IA No. CAN 1 /23 and CAN 2/23; Usha Martin Limited & Anr. Vs. The Deputy Commissioner of State Tax, Durgapur Rang....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me other person. The delivery challan was also not signed by the consignor. Section 129 of the Act provides for imposition of 200% penalty if goods are transported without valid documents. The adjudicating and the appellate authority were of the considered opinion that the petitioner would be liable to pay penalty at the rate of 200%. 11. The respondents rely on the judgment delivered by the Hon'ble Supreme Court in the matter of Vardan Associates Private Limited vs. Assistant commissioner of State Tax and Central Section & Ors. reported in 2023 SCC Online SC 1710. 12. Prayer has been made for dismissal of the writ petition. 13. I have heard and considered the submissions made on behalf of both the parties. 14. From the documents annex....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that the movement of goods was in pursuance of a transaction that is not taxable is irrelevant and inconsequential because it is the mandate of law that there should be a delivery challan accompanying the goods in movement. If condition under the Act and the Rules are not complied, Section 129 will be attracted. Failure to comply a provision and the excuses taken for non-compliance will not exonerate the petitioner from facing action under Section 129 of the Act. 17. The Hon'ble Division Bench of this Court in the matter of Usha Martin Limited (supra) held that if the conduct of the assessee is not to evade tax then relief ought to be granted. The Hon'ble Division Bench relied upon several decisions in similar matters and being convinced ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion expired in the midst of transportation. In such a situation the Court was of the opinion that a fresh e-way bill ought to have been generated so that the transportation of the consignment could be concluded. 21. In the present case there was a valid e-way bill in support of the transportation. It is only because of non-production of the delivery challan that the penalty has been assessed and imposed. Though possession of all document in support of transportation is the fundamental requirement of law, but as it appears that, the petitioner did not have the intention to evade tax, accordingly, imposition of penalty at the rate of 200% of the tax payable appears to be highly disproportionate and not in accordance with the provisions of l....