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PANKAJ BHATIA
Sahib Furniture – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Pankaj Bhatia, J.
The present petition is being heard after exchange of pleadings.
2. This petition challenges the order dated 27.12.2017 whereby, an order came to be passed holding that the petitioner was liable to pay tax on the value of the goods assessed as Rs.9,70,000/-, the tax amount was quantified as 1,74,600/- and the penalty was imposed as 1,74,600/-. The petitioner also challenges the appellate order dated 23.11.2008 whereby, the appeal preferred by the petitioner was dismissed.
3. This Court had entertained the writ petition in view of the fact that the tribunal contemplated under the GST Act was not constituted. Even till date, the Tribunal has not been constituted. As the pleadings are exchanged in between the parties, the matter is being heard finally.
4. On perusal of the order passed under Section 129 (3) of the UPGST Act, it appears that the petitioner was transporting the goods from Ludhiana to Kolkata and the truck carrying the goods was intercepted, vide Interception Memo dated 17.12.2017 and subsequently thereto, the goods were physically verified and a show cause notice was issued to the petitioner on 19.12.2017. The reasons for detention as elaborate
The absence of requisite documentation, such as the E-way Bill, does not justify detention and consequent penalties when prior judicial authority negates such action.
For proceedings under section 129 of the UPGST Act, there must be intent to evade tax established; a mere technical breach does not warrant penalties.
Production of rectifying documents before detention of goods negates grounds for penalty under GST rules, reaffirming procedural fairness.
Detention and seizure of goods in transit under GST requires clear evidence of contravention; mere discrepancies in documentation cannot justify such actions.
Intention to evade tax is a prerequisite for imposing penalties under GST Act; mere technical issues should not warrant such penalties.
Intent to evade tax is a necessary condition for proceedings under Sections 129 and 130 of the CGST Act; absence of such intent invalidates penalties imposed under these sections.
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