physical verification discrepancy
|
Case Title |
M/s Raghav Metails vs State of Haryana and others. |
|
Court |
Punjab & Haryana High Court |
|
Honorable Judges |
Justice Ajay Tewari & Justice Pankaj Jain |
|
Citation |
2022 (3) GSTPanacea 301 HC Punjab CWP No.25057 of 2021 |
|
Judgement Date |
14-March-2022 |
|
Council for Petitioner |
Sandeep Goyal |
|
Council for Respondent |
Shruti Jain Goyal |
|
Section |
Section 129 of GST Act |
|
In Favour of |
In Favour of Assessee |
The Punjab & Haryana High Court bench of Justice Ajay Tewari & Justice Pankaj Jain has held that it cannot be said that the petitioner had already intent to evade the tax or the mismatch in the quantities is of such nature which shall entail proceedings under Section 129 of the Act. A person, who has already paid a tax of Rs.1276717.68/- on a consignment cannot be said to have an intent to evade tax amounting to Rs.11000/- Proceedings against the petitioner under Section 129 of the Act are hereby quashed.
physical verification discrepancy
FACTS OF THE CASE
The petitioner has called in question the action of the respondent/Authorities in proceeding under Section 129 of the Act against him and consequential detention of his goods. The petitioner claims that in the ordinary course of business, he sold copper scraps to M/s R.N.T. Metals Pvt. Ltd., Bhiwadi (Rajasthan) for an amount of Rs.83,69,594/- (including IGST @ 18%). While the aforesaid goods were in transit in Vehicle No.HR-55S-1938, the same were intercepted by respondent No.4 at Manesar on 27.11.2021. The goods were accompanied by valid Invoice No.RM/64/21-22 and e-way bill, as contemplated under the Act. On the asking of the Authorities, the said documents were produced however the vehicle carrying goods was ordered to be stationed and Form GST MOV-02 was issued. Reply to GST MOV-02 was filed on 03.12.2021. On the same date i.e., 03.12.2021, respondent No.4 issued Order of Detention under Section 129(1) of the Act in Form GST MOV-06 (Annexure P-14). Further, notice in Form GST MOV-07 (Annexure P-15) was issued to the petitioner under Section 129 (3) of the Act. Respondent points out that on physical verification discrepancy was found in the actual quantity and the quantity shown in Invoice and e-way bill. Actual quantity was found to be 90 kgs. 700 gms. more than what has been found as per Invoice. Thus, she claims that by showing lesser quantity the petitioner intended to evade tax.
physical verification discrepancy
COURT HELD
Considering the facts as recorded, held that it cannot be said that the petitioner had any intent to evade the tax or the mismatch in the quantities is of such nature which shall entail proceedings under Section 129 of the Act. A person, who has already paid a tax of Rs.1276717.68/- on a consignment cannot be said to have an intent to evade tax amounting to Rs.11000/-. In light of the fair stand taken by the petitioner and the fact that the mismatch cannot be termed as contravention of the provisions of the Act. Act, we deem it appropriate to allow the present writ petition. Proceedings against the petitioner under Section 129 of the Act are hereby quashed.
physical verification discrepancy
ANALYSIS OF THE JUDGEMENT
Ground raised in GST MOV-06 (Annexure P-14) deserves to be struck down. From perusal of the e-Invoice (Annexure P-4/A) it is clear that quantity of consigned goods is shown to be 10430.7 kilograms. An amount of Rs.1276717.68/- has been paid as tax on the consignment whereas as per the State, it was 10520 kilograms. The said difference in weight is less than 1%. As per State, the alleged evasion shall not be more than Rs.11000/. Court held that it cannot be said that the petitioner had any intent to evade the tax or the mismatch in the quantities is of such nature which shall entail proceedings under Section 129 of the Act. A person, who has already paid a tax of Rs.1276717.68/- on a consignment cannot be said to have an intent to evade tax amounting to Rs.11000/-. At this stage, Mr. Goyal states that the petitioner is ready to pay even the tax and penalty imposed by the State-Authorities which comes to be around Rs.22000/-.
Download PDF:
For Reference Visit: