GST Charcha: Compliances of E-Way Bill \u2013 Alarming Bells!!
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 23-7-2018<\/p>\n
GST Charcha: Compliances of E-Way Bill – Alarming Bells!!
\nRecently, 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.
\nThis 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 H<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n no., etc., to be filed before the delivery of goods by the transporter so that the conditions of validity of the movement of goods are met by the concerned parties. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ing to technical error with no intention to evade taxes to which the Court 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n isions of GST Act and Rules made thereunder irrespective of there being any intent to evade taxes or not. Further, there is no provision which allows for releasing of goods without levying penalty once the proof of payment of appropriate tax is shown or a mere technical breach is shown. Furthermore, in Section 17(5)(i) of the CGST Act, there is specific denial of credit in the GST Regime for such tax paid under Section 129. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST Charcha: Compliances of E-Way Bill \u2013 Alarming Bells!!By: – Bimal jainGoods and Services Tax – GSTDated:- 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 … Continue reading “GST Charcha: Compliances of E-Way Bill \u2013 Alarming Bells!!”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12747","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12747"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12747\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nEven 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.
\nHC upholds INR 1.32 crore penalty for non-filing of E-Way Bill 'Part B' during inter-state transportation of goods
\nA 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 <\/p>\n
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\nGloomy fate of Section 129 powers:
\nWith 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 t<\/p>\n
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\nFear looms large over the transportation industry of being met with the same fate for inadvertently non-filing of the information in Part B of the E-Way Bill. Resultantly, the All India Motor Transport Congress has initiated an indefinite pan-India transportation strike from July 20, 2018. The ongoing monsoon session of the Parliament should consider to appropriately amend Section 129 of the CGST Act, 2017 to restrict levying of penalties only in cases where there is intent to evade taxes.
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