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PRITINKER DIWAKER, ASHUTOSH SRIVASTAVA
Sanjay Sales Agency – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Heard Sri Shubham Agarwal, learned counsel for the petitioner, Sri Ankur Agarwal, learned counsel representing the Respondent No.2 and learned Standing Counsel, who has accepted notice on behalf of the State Respondent No.1.
2. The writ petition is aggrieved by the penalty order dated 08.09.2023 passed by the Assistant Commissioner Ghaziabad, Respondent No.2 in Form MOV-09 under Section 129 (1)(b) of the Goods and Services Tax Act, 2017 whereby and whereunder penalty of Rs.37,59,792/- has been levied upon the petitioner by not treating the petitioner to be the owner of goods. Admittedly, the goods were duly accompanied by the tax invoice, e-way bill and bilty issued in the name of the petitioner as the consignor and the goods were in transit through the State of U.P. during its movement from Delhi to Haldwani and as such, there was no intention to evade tax. It is further contended that the petitioner is the owner of the goods and is ready and willing to deposit penalty under protest under Section 129 (1) (a) to get the goods released considering the perishable nature of the goods and diminishing of its value substantially with the onset of monsoons. Strong reliance has bee
Intention to evade tax must be established for imposing a penalty under GST Act; misclassification of penalty type leads to legal error.
Intention to evade tax is a prerequisite for imposing penalties under GST Act; mere technical issues should not warrant such penalties.
For imposition of penalties under the GST Act, intent to evade tax must be established; mere expiration of documents does not suffice.
The court determined that compliance with documentation allows a transporter to be regarded as the owner of goods, affecting the imposition of penalties under the C.G.S.T. Act.
Penalties should be reserved for cases where there is a demonstrated actual intent to evade tax, and technical errors without potential financial implications should not be grounds for imposition of ....
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