2026 (6) TMI 428

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....etition, the petitioner is before this Court challenging the impugned order dated 30.12.2025 in Form GST-07 passed for the tax period 2019-2020. By the impugned order, the proposal in the Show Cause Notice in Form DRC-01 dated 29.09.2025 that preceded the impugned order has been confirmed. 4. In the impugned order, it has been observed as under:- "RFID violation: In GST, RFID (Radio Frequency Identification) violation relates to non-compliance with e-way bill rules. If RFID tags used or aren't properly scanned at checkpoints, it can lead to: -E-way bill mismatch -Vehicle detention -Penalties under GST In GST, if RFID data isn't reflected or there's a weighment mismatch, penalties can be imp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....xpayers. The main point to be noted here is that for these notable transactions which are non reflection of RFID data, weighment slip has also not been provided by the taxpayer for the above and below mentioned transactions. From GSTIN & Name To GSTIN & Name From Place & Pin To Place & Pin EWS No. & Dt Doc.No. &Dt. Cess Vol. Tax Vol NSN NSN Disc. Latest Vehicle No. MONTH REMARKS 32DLEPS535481ZB/ MAIN STAR STEELS 33AAZPF4930H1ZJ/ SHREE ASHAPURI STEEL AND ALLOYS /679313 Coimbatore / 641049 561138945257- 05/10/2019 19:47:00 18-05/10/2019 575575 103603.5 7204 SS SCRAP KA01C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 603650 108657 7204 SS SCRAP TN28ACB327 FEB.20 No Record Available 34CJIPA8132J1ZB32J1ZB/ SRI ANGALA ESWARI TRADERS 33AAZPF4930H1ZJ/ SHREE ASHAPURI STEEL AND ALLOYS Iyyanar Nagar, Kosapalay am/ 605013 Coimbatore/ 641049 53117276648804/ 03/2020 18:44:00 97-04/03/2020 466750 84015 7204 SS SCRAP TN28ACB327 MAR.20 No Record Available 33AFZPV1483L1Z1483L1Z1/ SRI SRINIVASA METAL MART 33AAZPF4930H1ZJ/ SHREE ASHAPURI STEEL AND ALLOYS Erode-538003/638003 Coimbatore/ 641049 501166740473 09/02/2020 08:01:00 47-09/02/2020 214700....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....most of the cases and RFID movment data also show no records for the inward transactions of the taxpayer. Hence all the above facts and analysis clearly prove that all the ITC on inward supply transactions are liable to be penalized @ 100% as per section 122(1)(vii) read with section 74 of the CGST / SGST Act. When the Department calls for the documents for verification, the taxpayer has to produce them without failure. But in this case, the taxpayer has not produced all the called for documents (like weighment slips). Hence finally it is concluded that the entire ITC claimed is determined to be disallowed as detailed below: Year IGST CGST SGST Total 2019-20 400758 4539961 4539961 9480680 All the ITC o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ared for the personal hearing opportunity given to them on 17.11.2025 and 27.11.2025. At the time of personal hearing the taxpayer was informed about penalty dues to be paid by them as per the show cause notice is issued under Section 74 of the TNGST / CGST Act 2017. SUMMARY OF PENALTY DUES TO BE PAID BY THE TAXPAYER Defect IGST Penalty due (Rs) CGST Penalty due (Rs) SGST penalty due (Rs) Total 1.Inward ITS disallowed 400758 4539961 4539961 9480680 TOTAL 400758 4539961 4539961 9480680 Thus the taxpayer is liable to pay CGST penalty due of Rs. 4,00,758/-, SGST penalty due of Rs. 45,39,961/- and CGST penalty due of Rs. 45,39,961/- as all the ITC on inward supply transactions are liab....