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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
G.S. SANDHAWALIA, LAPITA BANERJI, JJ.
M/s. Bagri Steels – Petitioner
Versus
State of Punjab & Ors. – Respondents
CWP- 510 of 2024
Decided On : 10-01-2024
JUDGMENT
G.S.Sandhawalia, J. (Oral)
Challenge in the present writ petition filed under Article 226 of the Constitution of India is to the order dated 05.01.2024 (Annexure P-8) passed by respondent No.2 wherein penalty and fine has been imposed under Sections 130(1) and 130(2) of the Central/Punjab Goods and Service Tax Act, 2017 (in short 'the Act') for the goods which were being carried in vehicle No. HR-56A-8899 which had been intercepted on 15.12.2022.
2. Keeping in view the fact that there is a remedy of appeal which is provided under Section 107 of the Act on a nominal payment of 10% of the amount imposed, we are of the considered opinion that the petitioner has an alternate and efficacious remedy available.
3. Faced with this situation, counsel for the petitioner submits that he may be permitted to approach the Appellate Authority by filing a statutory appeal. Keeping in view the law laid down by the Apex Court in The State of Punjab v. M/s. Shiv Enterprises and others, 2023 (96) GST 120, we are of the considered opinion that it is not for this Court to go into the disputed questions which are now sought to be raised as to whether the vehicle had stopped at Khanna to unload the goods or whether it was in transit as such.
4. Accordingly, the present writ petition is disposed of with the observation that the petitioner is relegated to the remedy before the Appellate Authority.
The existence of an alternate remedy under the Central Goods and Services Tax Act precludes the maintainability of a writ petition challenging penalties imposed.
The court will not entertain writ petitions against show cause notices, emphasizing the necessity of pursuing statutory remedies as per the relevant tax laws.
Technical grounds should not obstruct the right to appeal; appeals must be heard on merits.
The appellate authority must consider all objections raised by the petitioner regarding the nature of goods to ensure lawful detention and imposition of tax.
For imposition of penalties under the GST Act, intent to evade tax must be established; mere expiration of documents does not suffice.
Intention to evade tax is a prerequisite for imposing penalties under GST Act; mere technical issues should not warrant such penalties.
Payment under Section 129(1) TNGST Act concludes proceedings per 129(5); petitioner to appeal under Section 107.
The court cannot entertain writ petitions against show cause notices; such matters must be verified by the competent authorities.
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