GST Update No 136 on enhancement of cost payable to assessee by SC

One of the fundamental reasons for introduction of GST regime in India was to permit seamless movement of goods and hassle-free trade between various states and union territories. The concept of check-posts was to be abolished to ensure speedy and free movement of goods. However, the lawmakers were of the opinion that movement of goods should be with minimum control so that the assessees have fear in their minds as regards initiation of proceedings if goods were transported with illicit intention to evade tax. Therefore, provisions related to E-way bill were enacted and introduced in GST Law. However, it is often observed that these provisions are taken as a tool to harass the assessees even in genuine cases. Recently, an issue regarding transportation of goods on expired eway bill travelled upto Hon’ble Supreme Court in the case of ASSISTANT COMMISSIONER V/S SATYAM SHIVAM PAPERS PVT. LTD. The analysis of this decision is subject matter of our present update. The same issue was decided by Telangana High Court which is now challenged before Apex Court by the revenue authorities. The assessee was transporting goods from one place to another and prepared e-way bill for the same. However, the revenue authorities contended that the assessee is engaged in tax evasion as the e-way bill was expired a day earlier and the goods were kept at the house of relative instead of keeping them at any other place for their safe custody. The High Court stated that there was delay in transporting the goods to their destined place due to heavy traffic blockage because of Anti CAA and NRC agitation. Further, the next two days were Saturday and Sunday. The High Court was of the view that the concerned state is responsible for not providing smooth passage for traffic. The assessee cannot be held responsible as the reason of not delivering goods on time as the situation was beyond the control of the assessee. The contention of the revenue authorities that the assessee has evaded tax is baseless. The Apex Court conceded with the conclusion arrived at by the Telangana High Court and stated that it is blatant abuse of power by the revenue authorities. In the light of the above, since the assessee has faced harassment, it was decided to allow the petition with consequential benefit i.e. to increase the amount of cost already awarded by High Court from Rs. 10,000/- to Rs. 69,000/-. The above cited Supreme Court’s judgment is a landmark judgment for the taxpayers. There have been number of similar cases wherein the Courts have awarded costs to the assessee for unnecessary litigation instituted by the department. It is very common that the taxpayers have to knock the doors of the Court in order to get relief. The need of the hour is to resolve and simplify the matters related to e-way bills so that unwarranted litigations and harassments faced by the taxpayers can be avoided. The revenue authorities should understand that minor contraventions, that too which are beyond the control of the assessee, should not be treated at par with malafide intention to evade taxes.

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GST Update No 136 on enhancement of cost payable to assessee by SC

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