Goods and Services Tax – GST – By: – Bimal jain – Dated:- 23-7-2018 – GST Charcha: Compliances of E-Way Bill – Alarming Bells!! Recently, a penalty of whopping INR 1.32 crores (approx.) imposed by the Hon ble High Court ( HC ) of Madhya Pradesh on a transport company namely M/s Gati Kintetsu Express Pvt. Ltd. for non-filing of Part-B of E-Way Bill has created a situation of flux amongst the transporters as to what is the real essence of introducing E-Way Bill system in India – Is it really a system to check tax evasion or to confer arbitrary powers on authorities to impose heavy penalties in case of missing details for a technical fault even when apparently there is no ill intention to evade taxes. This GST Charcha aims to draw attention on the troublesome open powers for detention and seizure of goods/conveyances in transit under Section 129 of the CGST Act, 2017 in the light of recent judgment of Madhya Pradesh HC viz-a-viz earlier ruling of Allahabad HC and the likely consequences
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r so that the conditions of validity of the movement of goods are met by the concerned parties. Even E-way bill is mandatory for non-taxable supplies through delivery challan: Kerala HC in the case of Assistant State Tax Officer Vs. Indus Towers Ltd. [ 2018 (7) TMI 1181 – KERALA HIGH COURT ], has held that E-way bill mandatory for non-taxable supplies through delivery challan. HC upholds INR 1.32 crore penalty for non-filing of E-Way Bill 'Part B' during inter-state transportation of goods A matter arose before the Madhya Pradesh HC in the case of Gati Kintetsu Express Pvt. Ltd. Vs. Commissioner, Commercial Tax of MP & Ors [ 2018 (7) TMI 1097 – MADHYA PRADESH, HIGH COURT ], wherein a transport company was carrying consignment of goods from Pune to Noida via Indore where it was apprehended in Indore for not carrying along the requisite and properly filled up E-Way Bill. The transport company failed to fill up Part-B of the E-Way Bill and resultantly the goods were seized and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
urt responded that no such grievance was uploaded on the GST grievance portal and hence such a plea cannot be availed by the petitioners for such non-compliance. Gloomy fate of Section 129 powers: With all due regards to the Hon ble Madhya Pradesh HC, there does not seems any viable justification in imposing such harsh penalty on assessee for mere failure to fill Part B of E Way Bill. The fact that E-Way Bill was carried with the consignment and having all particulars duly filled in Part A of E-Way Bill, evasion of taxes cannot be assumed arbitrarily. It needs to be appreciated that the primary purpose for introducing E-Way Bill is to track the movement of goods and ensure no tax evasion. But, when the petitioner has already discharged his liability of payment of tax, then imposing such a severe penalty is too harsh for a bona fide law-abiding citizen. Further, it is a settled proposition of fiscal jurisprudence that mere non-compliance of procedural aspect of law without the intention
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =