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2022 Supreme(Mad) 3557
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
M. NIRMAL KUMAR, J.
M/s. Macmet Engineering Limited, Rep. By its Authorized Signatory, Sathish Kumar, Tuticorin - Appellant
Versus
The Commissioner of Commercial Taxes, Chennai & Another - Respondent
Writ Petition (MD) Nos. 19395 to 19399 of 2022 & W.M.P. (MD)Nos. 14157 & 14159, 14158 & 14161, 14163 & 14167, 14160 & 14162 & 14164 & 14166 of 2022
Decided On : 01-09-2022
Advocates appeared:
For the Petitioner:S. Jaikumar, Advocate. For the Respondents:C. Satheesh, Government Advocate.
For the Petitioner:S. Jaikumar, Advocate. For the Respondents:C. Satheesh, Government Advocate.
The jurisdictional assessing officer should decide the issue after giving an opportunity to the petitioner and pass appropriate orders.
Headnote:
GST - Transportation of Goods - 'Bill to - Ship to' concept - CGST Act, 2017, TNGST Act, 2017 - The court quashes the impugned detention orders and directs the second respondent to forward all the documents to the concerned jurisdictional assessing officer, who shall take up the issue and decide the same after giving opportunity to the petitioner. The petitioner is directed to execute a bond for the demand and penalty raised. The jurisdictional assessing officer is to decide the case on its own merits and pass appropriate orders.
Fact of the Case:
The petitioner, engaged in the supply of bulk materials transporting/handling systems, was awarded a sub-contract from ITD Cementation India Ltd. for the supply of jetty and pipe conveyor system. The petitioner placed a purchase order with M/s.Phoenix Conveyor Belt India Private Limited for the supply of pipe conveyor belts and its accessories to be used for the work at TANGEDCO. The goods were transported based on the 'Bill to - Ship to' concept, involving two supplies and two tax invoices. The vehicles carrying the goods were intercepted by the Roving Squad Officials, leading to detention and imposition of penalty under the CGST Act, 2017 and TNGST Act, 2017.
Finding of the Court:
The court found that the detention orders were quashed and directed the concerned jurisdictional assessing officer to decide the issue after giving an opportunity to the petitioner. The petitioner was directed to execute a bond for the demand and penalty raised. The jurisdictional assessing officer was tasked with deciding the case on its own merits and passing appropriate orders.
Issues: The issues involved in the case included the transportation of goods under the 'Bill to - Ship to' concept, compliance with tax invoice and e-way bill requirements, and the imposition of penalty under the CGST Act, 2017 and TNGST Act, 2017.
Ratio Decidendi: The court held that the jurisdictional assessing officer should decide the issue after giving an opportunity to the petitioner and pass appropriate orders. The petitioner was directed to execute a bond for the demand and penalty raised.
Final Decision: The court quashed the impugned detention orders and directed the second respondent to forward all the documents to the concerned jurisdictional assessing officer. The jurisdictional assessing officer was tasked with deciding the case on its own merits and passing appropriate orders. The petitioner was directed to execute a bond for the demand and penalty raised.
JUDGMENT
(Prayer in all the W.Ps.: Petitions filed under Article 226 of the Constitution of India praying for issuance of a Writ of Certiorarified Mandamus, to call for the records relating to the impugned order Nos.ADJ-II-14/2022-23/Madurai (Int.), ADJ-II-16/2022-23/Madurai (Int.), ADJ-II-17/2022-23/Madurai (Int.), ADJ-II-15/2022-23/Madurai (Int.) and ADJ-II-18/2022-23/Madurai (Int.), dated 11.08.2022, passed by the second respondent, quash the same and to direct the second respondent to release the vehicles bearing Registration Nos.NL-01-AF-4716, NL-01-AA-6401, OD-15-L-5292, NL-01-AF-4876 and NL-01-AF-4716 along with consignments, respectively, within a time frame to be fixed by this Court.)
Common Order:
1. The parties and the issue involved in all these writ petitions are one and the same and therefore, they are heard together and disposed of this by this common order.
2. The contention of the learned counsel for the petitioner is that the petitioner is engaged in the supply of bulk materials transporting/handling systems. The petitioner provides solutions for bulk materials transportation, like coal, limestone, cement, potash, flyash and sinter, using overland belt conveyors, pipe conveyors and in-plant conveyors. The petitioner is having registered office at Kolkata, West Bengal, and they are registered under the provisions of G.S.T. ITD Cementation India Private Limited was awarded an EPC Contract, dated 13.02.2018, by the Tamil Nadu Generation and Distribution Corporation Ltd. [TANGEDCO], for establishment of captive coal jetty with unloading facility and pipe conveyor system for their thermal project at Udangudi, Thoothukudi District. Subsequent to the same, ITD Cementation India Limited entered into a back to back EPC contract with the petitioner for supply of jetty and pipe conveyor system together with allied electrical, instrumentation and control works.
3. The petitioner Company was issued with the letter of indent by ITD Cementation India Limited. The petitioner opened a site office within the radius of 1.5 Kms. from the work site of TANGEDCO and obtained GST Registration No.33AABCO7599L1ZT, for the purpose of stock transferring of certain machineries, equipments and other materials required for execution of the contract from the premises of the petitioner at West Bengal. The site office of the petitioner is not involved in any supply of goods or services till date and thereby, filing Nil returns. Consequent to the letter of indent, the petitioner placed purchase order with M/s.Phoneix Conveyor Belt India Private Limited, West Bengal, for supply of steel cord pipe conveyor belts and splicing kits to be supplied to ITDC. As per the purchase order, the supplies to be made to the petitioner [billed in the name of the petitioner] and the goods to be dispatched to ITD Cementation India Ltd., C/o.TANGEDCO, at Udangudi. ITDC had added the work site of TANGEDCO as additional place of their business in the GST registration certificate. The officials of the TANGEDCO approved for the supply of 9550 meters of pipe conveyor belts to be transported from the premises of Phoenix Conveyor Belt India Private Limited, West Bengal, to the work site in 34 reels and 34 reels of pipe conveyor belt were transported as 34 consignments. 14 consignments delivered and received at the work site of TANGEDCO, the additional premises of ITD Cementation India Limited. Since the transaction involved supply of materials by M/s.Phoenix Conveyor Belt India Private Limited to the petitioner and from the petitioner to ITDC, the transaction was structured under 'Bill To – Ship To' concept. When the goods were moving to the work site, the same was accompanied by invoice and e-way bill raised by M/s.Phoenix Conveyor Belt India Private Limited. The petitioner would also raise their invoice on ITD Cementation India Limited when the goods are in transit and the same would complete the transaction of supply from M/s.Phoenix Conveyor Belt India Private Limited to
