GST DAILY – 407 : State tax authority can issue a notice under IGST if goods are detained under the cross-authorization provision: HC
THE HON’BLE CUTTACK HIGH COURT IN THE CASE OF Narayan Sahu V/s Union of India, decided on 26-11-2024
Tag: vehicle detention
GST DAILY – 393 : No goods shall be detained on the ground of undervaluation if the goods are accompanied by all relevant documents: HC
THE HON’BLE ALLAHABAD HIGH COURT IN THE CASE OF A.N. Enterprises V/s Additional Commissioner,
SC hold that Final adjudication order is a substantive safeguard and not mere formality
The Hon’ble Supreme Court in ASP Traders held that despite payment of tax and penalty under Section 129(1), the proper officer is obligated to pass a reasoned order under Section 129(3) to enable statutory appeals, and the deeming fiction under Section 129(5) does not absolve this duty where objections have been filed and payment made under protest.
Carrying a valid E-Way Bill is mandatory for the movement of goods from one place to another
The Hon’ble Allahabad High Court in M/s. Lalitpur Power Generation Company Ltd. dismissed the writ petition and upheld the penalty imposed under Section 129 of the UPGST Act for want of valid e-way bill. The implementation of the 14th Amendment to tthe UPGST Rules, w.e.f. April 01, 2018, carrying a valid e-way bill during goods transit is mandatory.
Income Tax department seizes truck in major GST evasion operation at Srirampur
The Income Tax Department seized a truck suspected of involvement in GST evasion during a targeted raid in Srirampur. The operation, carried out by a special team, intercepted a vehicle transporting tobacco (Gutkha) worth over Rs 1 crore.
GST DAILY – 306
Detention of goods in transit without finding any intention to avoid tax is unjustified: HC
Penalty order passed on the detention of goods and vehicle after 7 days from service of notice is not sustainable
The Hon’ble Patna High Court in the case of M/s Kedia Enterprises ruled that an Order of detention in FORM GST MOV- 06 and the Notice in FORM GST MOV-07 must be in accordance with Section 129(3) of the CGST Act.
There is no provision to disclose the route of transportation of goods under the GST Law
The Hon’ble Allahabad High Court in the case of Vishal Steel Supplier found the detention of goods unjustified and that, unlike the Value Added Tax Act, 2008 (“the VAT Act”), there is no specific provision in the Goods and Services Tax Act, 2017 (“the CGST Act”) which requires Assessee to disclose the route of transportation. Consequently, the Court quashed the detention orders and mandated the refund of any amount deposited.
Penalty cannot be imposed for expired E-way bills in the absence of intent to evade taxes
The Hon’ble Calcutta High Court (Circuit Bench at Jalpaiguri) in M/s Maa Amba Builders set aside the order of detention and held that there was no material record available, therefore, no presumption can be drawn that there was the intention of the tax evasion. Taking into the consideration, within 24 hrs from the expiry of the validity of the e-way bill, there was material to show that was involved in the tax evasion.
Whether proper officer has the authority to pass an order beyond the period of 7 days from date of service of notice or detention or seizure of goods or conveyance?
The Honorable Patna High Court in the case of Pawan Carrying Corporation held that the proper officer must have issued the notice within seven days of detention or seizure of goods or conveyance. Section 129 starts with the Non-obstante clause and there is no reason to wait for an application by the driver of the vehicle for the verification of the goods when the vehicle is intercepted.