Back
ASHWANI KUMAR MISHRA, SYED AFTAB HUSAIN RIZVI
Western Carrier India Ltd – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Heard learned counsel for the petitioner, learned Standing Counsel representing State and Sri Gopal Verma learned counsel appearing for respondent nos. 4 & 5.
2. The petitioner is aggrieved by an order dated 14.08.2023 contained in annexure no.10 to the writ petition whereby the liability has been fixed upon it to pay penalty in terms of Section 129 (1) b of the C.G.S.T. Act, 2017. Further prayer made in the writ is to command the respondents to release the goods and the vehicle seized by respondents by accepting penalty in terms of section 129 (1)(a) of the GST Act.
3. In addition to other arguments advanced, learned counsel for the petitioner places reliance upon a circular issued by the Board on 31.12.2018 which provides that if the invoice or any other specified document is accompanying the consignment of goods then either the consigner or the consignee should be deemed to be the owner of the goods. Relying upon such circular, it is urged on behalf of the petitioner's that the petitioner is a carrier and the goods transported by it was accompanied by E-Way bill and invoice etc. The submission is that the authorities in such circumstances have erred in imposing penalty
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.
The court established that proper documentation allows the owner of goods to be treated under Section 129(1)(a) of the CGST Act for release, overriding penalties under (1)(b).
Intention to evade tax must be established for imposing a penalty under GST Act; misclassification of penalty type leads to legal error.
Penalties under GST cannot be imposed without summoning the petitioner, and lack of business activity does not negate ownership; statutory circular provisions should be adhered to in determining owne....
The consignee of goods is deemed the owner if invoices and e-way bills accompany the consignment, contrary to penalty orders based on inadequate findings.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
