9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2025 (1) TMI 1364 - HC - GSTLevy of penalty u/s 129 (3) of the West Bengal GST Act 2017 imposing a penalty equal to 200% of tax payable - failure to roduce original/duplicate copy of the tax invoice/delivery challan/E-way bill at the time of interception as per the GST law - intent to evade present or not - HELD THAT - It is an admitted position that there were discrepancies in the E-way bill and the delivery chellan i.e the delivery challan subsequently submitted by the appellant does not match the E-way bill generated in favour of Pisi Suriya Singhpo of Arunachal Pradesh. Noticing the aforesaid discrepancy the adjudicating authority imposed penalty. T here was no finding on the issue of mismatch between the e-way bill and the delivery challan vis- -vis appellant s intention to evade tax. Given this situation the adjudicating authority as a fact finding body was not precluded from going into the aforesaid issue. As per the E-way bill generated by the appellant the consignor is one Pisi Suriya Singhpo of Arunachal Pradesh who is an unregistered person whereas the delivery challan subsequently placed on record was not signed by the consignor and was accompanied by a release letter issued by one M/s. B. G. Enterprise a registered person under the GST Act. This mismatch is not an inadvertent one but gives opportunity to conceal the identity of the actual user (a registered person) of the inward services supplied and thereby evade payment of GST on such supply. The E-way bill foot print is easily available to the tax authorities hence the name of an URP has been intentionally declared in the E-way bill with the intention to conceal the actual recipient of the rental/lease service of the said JCB machine by a registered person with the sole intention to evade the tax liability. Conclusion - The discrepancies in transportation documents particularly those suggesting an intention to evade tax justify the imposition of penalties under the GST framework. The findings of the Hon ble Single Judge are well merited and does not call for interference - Appeal dismissed.
ISSUES PRESENTED and CONSIDERED
The core legal issues considered in this judgment are: 1. Whether the delay in filing the appeal should be condoned under Section 5 of the Limitation Act. 2. Whether the imposition of a penalty under Section 129(3) of the West Bengal GST Act, 2017, equal to 200% of the tax payable, was justified given the discrepancies between the E-way bill and the delivery challan. 3. Whether the adjudicating authority exceeded its mandate upon remand by the Single Judge, particularly concerning the mismatch between the E-way bill and the delivery challan. ISSUE-WISE DETAILED ANALYSIS 1. Condonation of Delay The application for condonation of delay was filed under Section 5 of the Limitation Act. The Court considered the explanations provided for the delay and found them satisfactory, leading to the condonation of the delay in filing the appeal. 2. Justification of Penalty Imposition under Section 129(3) of the West Bengal GST Act, 2017 Relevant Legal Framework and Precedents: Section 129(3) of the West Bengal GST Act, 2017, provides for the imposition of a penalty for discrepancies in transportation documents, such as E-way bills and delivery challans, which indicate an intention to evade tax. Court's Interpretation and Reasoning: The Court analyzed the facts surrounding the transportation of the JCB machine, focusing on the discrepancies between the E-way bill and the delivery challan. The E-way bill listed Pisi Suriya Singhpo, an unregistered person, as the consignor, while the delivery challan was issued by M/s. B. G. Enterprise, a registered dealer. This mismatch suggested an attempt to conceal the identity of the actual user and evade tax. Key Evidence and Findings: The driver failed to produce the necessary documents at the time of interception. The delivery challan presented later did not match the E-way bill, lacking the consignor's signature and accompanied by a release letter from a different entity. Application of Law to Facts: The Court applied Section 129(3) to the facts, affirming that the discrepancies indicated an intention to evade tax, justifying the penalty imposed. Treatment of Competing Arguments: The appellant argued that the discrepancy was inadvertent, and there was no intention to evade tax. However, the Court found that the mismatch was not accidental but a deliberate attempt to conceal the actual transaction details. 3. Scope of Adjudicating Authority's Mandate upon Remand Relevant Legal Framework and Precedents: The remand order from the Single Judge required the adjudicating authority to reconsider the penalty imposition, particularly focusing on the intention to evade tax. Court's Interpretation and Reasoning: The Court held that the adjudicating authority did not exceed its mandate. The Single Judge's remand order did not preclude the authority from examining the mismatch issue, as it was central to determining the intention to evade tax. Key Evidence and Findings: The remand order emphasized the need to assess the intention behind the document discrepancies. The adjudicating authority's focus on the mismatch between the E-way bill and the delivery challan was within its remit. Application of Law to Facts: The Court determined that the adjudicating authority's actions were appropriate, as the mismatch was a critical factor in assessing the appellant's intention. Treatment of Competing Arguments: The appellant contended that the adjudicating authority overstepped its bounds by revisiting the mismatch issue. The Court disagreed, noting that the remand order did not limit the scope of reconsideration. SIGNIFICANT HOLDINGS Preserve Verbatim Quotes of Crucial Legal Reasoning: "In respect of intention to evade tax, we find that as per the E-way bill generated by the appellant, the consignor is one Pisi Suriya Singhpo of Arunachal Pradesh who is an unregistered person whereas the delivery challan subsequently placed on record was not signed by the consignor and was accompanied by a release letter issued by one M/s. B. G. Enterprise, a registered person under the GST Act. This mismatch is not an inadvertent one but gives opportunity to conceal the identity of the actual user (a registered person) of the inward services supplied and thereby evade payment of GST on such supply." Core Principles Established: The judgment reinforces the principle that discrepancies in transportation documents, particularly those suggesting an intention to evade tax, justify the imposition of penalties under the GST framework. Final Determinations on Each Issue: The Court condoned the delay in filing the appeal. It upheld the penalty imposed under Section 129(3) of the West Bengal GST Act, 2017, finding the discrepancies in the documents indicative of an intention to evade tax. The adjudicating authority acted within its mandate upon remand, appropriately considering the mismatch issue.
|
