Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *  The GSTN has issued an Advisory dated 21.04.2026 about the introduction of an Offline Tool for the Invoice Management System (IMS)  *  CBIC extends due dates for filing of FORM GSTR 3B  for the month of April 2026 *  Interest cannot be imposed in adjudication order, if not demanded/quantified in show cause notice : Allahabad HC *  Wheelchairs with toileting facility eligible for exemption: CESTAT affirms customs duty exemption to importer *  Industries urge GST council to allow inverted duty refunds on input services *  Tamil Nadu GST dept introduced virtual hearing facility for GST appeals under under section 107 of the TNGST act: detailed guidelines  *  CIC urges authorities to implement GST evasion complaint tracking system *  Even if the assessee opts "NO" for personal hearing in form DRC-06 ,The mandatory requirement under section 75(4) to grant opportunity of hearing cannot be waived:Gujarat High Court  *  Glufosinate imports curbs imposed by govt *  Government extends Re-import period for exported cut & polished diamonds *  CIC flags lack of tracking system for tax evasion complaints,urges GST authorities to improve transparency *  No Custodial Interrogation needed in GST fraud case based on documentary evidence already in Department's Possession : Chattisgarh HC *  Orders under section cannot be sustained if passed without considering the taxpayer's objections and without granting a personal hearing:Gujarat High Court *  Mere cancellation of supplier's registration cannot,by itself,justify denial of ITC or cancellation of the recipient's registration:Bombay High Court *  High Court sets aside GST notice citing factual errors and natural justice violations *  Provisional Bank Attachment under Section. 110 of Customs Act Unsustainable Beyond Statutory period without Extension order: Bombay HC orders to defreeze accounts *  Post Clearance MRP Alteration by Distributor Does not attract Differential Customs Duty: CESTAT *  DGFT Expands scope of 'Screws' classification under RoDTEP Scheme  *  E-way bills surze to all time high of 140.6 million in March *  GST Exemption Allowed on Pure Labour Services for Standalone Houses: AAR  *  GST Payable Only on Margin in Second-Hand Car Sales, Subject to Strict Conditions and No ITC Claim: AAR *  DGFT rolls out procedure for allocation of calcined coke *  GST portal update : Pre-deposit amount now editable in Appeals *  J&K HC declared TMT scrap a 'Specified Good' eligibile for GST refunds under Support Scheme  *  Pigmy agents are employees of banks; no GST can be levied on commission  paid to them : Karnataka HC *  DGFT Revises HS Code Description for Screws Under RoDTEP *  GST Registration Cancellation Invalid Without Proper Service of Notice: Allahabad High Court. *  Bengaluru CGST | GST Backlog Appeals Deadline Fixed at June 30, 2026 *  No Time Bar on Refund of Service Tax for Services Not Rendered: CESTAT  Remands Indiabulls Case for Unjust Enrichment Check. *  Supreme Court Holds Renewable Energy Incentive Must Benefit Generators, Not Be Adjusted in Tariff
Subject News *   Delhi HC Quashes Order, Says Reminder Cannot Validate Improperly Served GST SCN *  KARNATAKA HIGH COURT REMANDS GST SHORTFALL MATTER DUE TO ABSENCE OF PERSONAL HEARING   *  CESTAT cancels confiscation and penalties on imported computer cabinet cases: Custom duty restricted to 111 surplus units *  Deposit of tax during search or investigation cannot be treated as 'Voluntary Payment' : Bombay High Court *  Section 76 of the CGST cannot be invoked where the tax has already been duly deposited, even if through another registration of the same entity: Madras High Court *  Sec 74 allows use of material regardless of source; illegality or flaws in section 67 search do not vitiate valid adjudication: HC *  Inter-State transfer of ITC on Amalgamation permissible as given under section 18(3) read with rule 41 of the CGST rules, 2017: Gujarat High Court *  HC: No GST on commisson paid to Pigmy Agents *  IGST refund denial on illegible bill of lading invalid absent chance to furnish docs; merit reconsideration in appeals directed: HC *  ITC is not admissible on GST paid on leasehold rights of land used fpr setting up an air seperation plant: AAAR,Tamil Nadu *  GST: No penalty under Section 74 after voluntary ITC reversal due to non-existent supplier : High Court *  TN AAAR denies GST ITC on Land Lease under Sec. 17(5)(d) for setting up plant and machinery *  GST proceedings quashed as notices sent to old address, despite updated address in registration *  Importer Can’t Be Penalised for Alleged IGCR Procedural Lapses Without Evidence of Departmental Error: CESTAT *  Structured Healthcare Training Not ‘Charitable Activity’, 18% GST Payable: AAR  *  CESTAT As The Appellate Authority For Central Sales Tax Disputes: A Paradigm Shift Under Finance Act, 2023 *   Rs. 25K Cost Imposed On SGST Joint Commissioner for Attaching Bank  Accounts Without Forming Mandatory “Opinion”: Bombay HC *   Ex-Parte GST Order Without Hearing Violates Natural Justice: Karnataka  High Court Quashes Adjudication and Bank Attachment.  *   Retrospective GST Cancellation Can’t Invalidate Genuine Transactions:  Jaipur Commissioner (Appeals) Quashes Rs. 95,670 ITC Demand. *   GST Pre-Deposit Non-Compliance: Allahabad High Court Allows Appeal  Subject to Rs. 30 Lakh Balance Deposit, Recognises Offline Filing. *  Documentary Nature of Evidence: Allahabad High Court Grants Bail in Rs. 32.66 Crore Fake ITC Fraud Case *  Supreme Court Flags Systemic Bias in Army’s Permanent Commission Process for Women Officers *  Re-Determination of Land Compensation Can Be Based on Appellate Court Awards, Clarifies Scope of S. 28-A: Supreme Court. *  Supreme Court Imposes Rs. 5 Lakh Costs On Rent Authority Officer For Acting Beyond Jurisdiction. *  DGGI Meerut | Court Denies Bail to Accused in Claiming Fake ITC And Export Refunds *  Denial of GST Rate Revision Benefit to Contractor Violates Article 14: Rajasthan HC *  GST Registration Cancellation for Non-Filing of Returns: Gauhati High Court Directs Restoration on Compliance. *   Supreme Court Quashes FEMA Adjudication Orders, Revives Proceedings at  Show Cause Stage. *   Higher Rank, Harsher Punishment Justified: Supreme Court Restores Dismissal  of Bank Manager in Misappropriation Case. *   Limitation for Export Refund to Be Counted from Foreign Exchange Realisation,  Not From Export Invoices Issuance: CESTAT  

Comments

Print   |    |  Comment

GST Update No 278 on detention for expiry of E-way bill by few hours

GST Update No 278 on detention for expiry of E-way bill by few hours
The highest cases are being reported with respect to detention and seizure of goods during their transportation on account of discrepancies found in e-way bill. There had been various Judicial Rulings wherein the High Courts have delivered that delay in delivery after expiry of e-way bill would not result into detention or imposition of penalty unless there is intention to evade tax. Further, the Apex Court in the case of ASSISTANT COMMISSIONER (ST) & ORS. V/S SATYAM SHIVAM PAPERS LIMITED held that no penalty can be levied for delay in the transportation of goods due to bottleneck of traffic. Recently, on similar lines, case was reported before Madhya Pradesh High Court in the case of M/s DAYA SHANKAR SINGH AND STATE OF MADHYA PRADESH. The decision imparted in this case is subject matter of discussion of our present update.
The petitioner is registered Government Contractor and had received work order from Divisional Project Engineer of Public Works Department for construction of additional laboratory and classroom at the Dindori college. The quotation was received from Mittal Steels for supply of TMT bars and hence, order was placed to them in Raipur. Mittal steels generated E-way bill for movement of goods from Raipur to Dindori. However, the vehicle subsequently suffered the problem and the clutch-plates of vehicle got damaged. The proprietor of “Maa Rewa Transport” sent vehicle for servicing to “Rama Moto Cooperation” Raipur on 18.05.2022. As on 19.05.2022, the vehicle got repaired and tax invoice was also raised for changing parts. Thereafter, the vehicle started its movement after getting gate pass. The vehicle reached at destination on 19.05.2022 between 10:30 to 10:45 pm and upon reaching the petitioner directed the driver to take the vehicle to weigh bridge. The Assistant Commissioner at 04:35 am as on 20.05.2022 stopped the truck and demanded all the relevant documents which were duly furnished by the driver.
CA. PRADEEP JAIN
??www.capradeepjain.com??pradeep@capradeepjain.com??4
However, the authority objected the E-way bill stating that it got expired as on 19.05.2022 at 12:00 am. Hence, GST MOV-02 was issued to the petitioner stating that e-way bill is expired and the vehicle was detained.
The petitioner requested that material detained should be supplied to him since the same were necessary for construction of classroom and laboratory. The written submissions of petitioner were not accepted and hence, MOV-06 and 07 were also issued specifying the penalty demanded. The Counsel of petitioner submitted that the proceedings under Section 129 are not justifiable and principles of natural justice were not followed. Further, no penalty should be imposed for “minor breaches” or procedural lapses. Also, the petitioner is not guilty of any fraudulent or gross negligence, hence, penalty imposed is totally unwarranted. It was argued that the respondent failed to see that there was no revenue loss. The intention of E-Way bill mechanism was to keep a check on movement of goods without tax invoice and to regulate tax evasion and the act of respondent however runs contrary to the scheme of mechanism. Reliance was placed on decision of Telangana High Court in the case of Satyam Shivam Papers Pvt. Ltd. V/s Asst. Commissioner, ST & Others, Calcutta High Court in the case of Ashok Kumar Sureka V/s Asst. Commissioner, State Tax, Durgapur Range, Divisional Bench in the case of Robbins Tunnelling & Trenchless Technology (India) Pvt. Ltd. V/s State of Madhya Pradesh & Others. Further reference was made to Circular No. 64/38/2018-GST dated 14.09.2018.
The Counsel of department argued that the order and notice issued in the present case contains no discrepancy or deficiency and the action taken is in accordance with the provisions of the Act.
The Court held that the submissions of appellant as regards to violation of principle of natural justice and gross negligence were not rebutted by the respondent. Reference was made to decisions on which the petitioner placed reliance. Hence, it was concluded that there is gross negligence on the part of revenue department since there is no tax evasion. It was bonafide mistake only and hence, no penalty should be imposed. It was directed to refund the amount of penalty paid within 30 days failing which interest at the rate of 6% is
CA. PRADEEP JAIN
??www.capradeepjain.com??pradeep@capradeepjain.com??5
payable to the petitioner by the department.
The above decision is yet another example in support of the fact that harsh and vindictive penalties should not be levied in case of technical breaches and lapses. Reference can be drawn to various decisions such as R.K. Motors V/s State Officers, M.R. Traders V/s Assistant State Tax Officer, Godrej Consumer Products Ltd. v/s ACST & E-Cum etc. It is high time that these settled Judicial Pronouncements should be followed by the departmental authorities before initiating any action against the taxpayers in order to avoid the unnecessary litigations.
Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com