TaxTMI 
TaxTMI 
2026 (5) TMI 1014
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....tified, it has not been fully constituted. Considering the same I shall take up to proceed the writ petition and dispose the same on merits. 4. By the impugned order the petitioners Appeal No.155/2021 dated 30.12.2021 against the Order in Original No.06/2020-2021 dated 24.12.2020 passed by the office of the second respondent has been rejected. The said order in Original No.06/2020-2021dated 24.12.2020 itself came to be passed in the background of the Show Cause notice issued to the petitioner in serial No. 1/2019/3499 dated 15.11.2019. By the aforesaid order in Original dated 24.12.2020, the following demand was confirmed: (i) I order to confiscate the goods seized vide Mahazar dated 25.05.2019 at the premised at Shop No.1, Krishnagiri Main Road, Bargur 635 104 Valued Rs. 58,28,248/- in terms of Section 130(1)(ii) of CGST Act, 2017; (ii) I impose a fine of Rs. 46,84,730/- ( Rupees Forty-Sixlakhseight four thousand seven hundred and thirty) on the tax payer in lieu of confiscation under the first provisio to Section 130(2) of CGST Act, 2017; (iii) I confirm the demand of Rs. 11,43,418/- - ( Rs. 5,71,709/- CGST and Rs. 5,71,709/- SGST) ( Rupees eleven la....
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.... Act, 2017, and the petitioner has been imposed with a fine of Rs. 46,84,730/- under section 130(2) of CGST Act, 2017, and imposing penalties of Rs. 11,14,342/- under Section 73(9) of CGST Act, 2017, and further additional penalty of Rs. 11,43,418/- under Section 122(xi) and (xvi) of CGST Act, 2017. 7. The facts of the case are that the petitioner is a dealer in second hand electronic goods and had purchased damaged items in an auction from Kerala. The petitioner was holding GST Registration for the premises at No.9, Dorai's Mahal, Jagadevi Main Road ( Near Hotel Agni), Bargur, Krishnagiri 635 104. Since the large quantum of items were purchased by the petitioner under an auction which is said to have taken place in Kerala, the petitioner claims to have stored them in Shop No.1 Krisgnagiri Main Road, Burgur. This place was not registered as an additional place of business of the petitioner in the GST Registration. It appears that inspection had taken place on 25.05.2019 at about 11:30 hours and statements were recorded from the proprietor wherein, there was an admission by the petitioner that the petitioner had not obtained a lease nor produced any lease agreement for the premis....
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....lied by the person. As the appellant has suppressed the facts regarding storing the goods at unregistered premises and not maintained proper record of stock of goods at the place where such goods were stored i.eNo.1,Krishanagiri Road, Bargur and have also failed to declare the additional place of business in their existing registration, the AA has held that the unaccounted goods seized from the unregistered premises is liable for penalty under Section 130 (1)(ii) of CGST Act 2017 and also liable for penalty under Section 122(1) bid. On carefully going through the submissions as well as records of the case, it is observed that the goods were seized during search by the investigation officers as at the time of search, records of stock or receipt were not provided and the said godown was also no mentioned/added in the registration certificate as an additional place of business. The proprietor of the appellant firm has also accepted that he has not added the said godown in the Registration certificate as it was taken on temporary basis so was not aware of including it as additional business premises in their registration certificate. As per the provisions contained in Section22,28 of C....
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....nce Redressaal portal. So the demand of appropriate GSt Rs. 11,43,418/- in the impugned order on the goods cleared to the unregistered premises No.1, KRishnagiri Road, Bargur, adopting 110% of the purchase price is sustainable. 09. Penalty of Rs. 1,14,341/- has also been imposed by the AA under Section 73(9) of CGST Act, 2017 but the appellant have claimed no such proposal is found in the Show Cause Notice. The Show Cause Notice proposes the tax amount of Rs. 11,43,418/- to be demanded under Section 35(6) read with Section 73(1) of CGST Act,2017 & Rules 36 of CGST Rules, 2017 and penalty under Section 122(x) and (xvi) bid have been proposed. So the intent to impose penalties has been made in the Show Cause Notice through specifications Section 73(9) bid was not discussed. The numbering of wrong sub-section by the AA in a portion of the order could not be ignored considering the notice and order in totality. Notwithstanding the above, even if non-specification of the Section of Rule in the notice is sought to be claimed by the appellant, it is observed that in the case of CCE Vs Lanjekar Sales Corporation reported in 2007(5) STR 272 (Tfi) it was held by the Hon'ble Tribunal....
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....s that the goods become liable to confiscation where any person does not account for any goods on which he is liable to pay tax under CGST Act, 2017. It is noticed that based on the value of goods less tax involved, fine of Rs. 46,84,730/- has been imposed under first proviso to Section 130(1)(ii) of CGST Act, 2017. The appellant have claimed that not including the unregistered premises in the registration certificate cannot attract the provisions of Section 130(1)(ii) of CGST Act, 2017. But it is observed that the goods were seized during the search by the investigating officers because at the time of investigation the appellant have not provided stock records and proper accounts and the said godown/premises was also not registered or added as additional place of business in their GST registration. So, there is no dispute that at the time of search operation, the said premises was not added in their GST registration. As per the provisions of Section 22,28 of CGST Act, 2017 and Rule 19 of CGST Rules, 2017, it is observed that it has been mandatory for every person who wants taxable supply of goods or service to obtain registration under the GST Act. Further it has also been provide....