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TMI Blog2021 (4) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... nstant case, it is fact on record that the owner of the goods failed to come forward for releasing of the detained goods and the goods were got released by the Transporter of the conveyance. Therefore, in terms of Section 129 (1) (b) of CGST Act, 2017, detained goods has to be released on payment of the applicable tax and penalty equal to the fifty per cent of the value of the goods reduced by the tax amount paid thereon whereas, in the instant case, the owner of the goods does not come forward to pay tax and penalty - In the instant case, penalty should have been imposed by the adjudicating authority equal to the fifty per cent of the value of the goods reduced by the tax amount paid thereon, whereas, adjudicating authority has imposed penalty equal to 100% per cent of the tax payable on the detained goods which is not proper and correct. In the instant case value of the goods is ₹ 1,23,312/- therefore, penalty is stands modified to ₹ 61,656/- under clause (b) of sub section (1) of Section 129 of CGST Act, 2017 and the penalty already deposited by the respondent may be appropriated accordingly. Appeal allowed in part. - 56 (MAA) CGST/JPR/2021 - - - Dated:- 26-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the receipt of this notice, as to why the proposed tax and penalty may be made payable by them and to get the goods and conveyance released, failing which further proceedings under the CGST Act, 2017 read with IGST Act, 2017 shall be initiated. The notice was received by the respondent i.e. Sh.Naresh Chawla, Owner of M/s Chawla Transport Company, Deeg Road, Kumher Gate, Bharatpur, Rajasthan on 26.01.2020. 2.4 In view of the above, the owner of conveyance Sh.Naresh Chawla, (M/s Chawla Transport Company, Deeg Road, Kumher Gate, Bharatpur, Rajasthan) came forward to pay such tax and penalty as proposed under Section 129 (1) (a) of the Act within stipulated time of fourteen days from the date of receipt FROM GST MOV-07, wherein they were asked to show cause as to why:- (i) Central Goods Service Tax ₹ 13689/- + State Goods Service Tax ₹ 13689/- and Cess ₹ 33642/- under Section 129 (1) and penalty under Section 129 (1) (a) should not be demanded and recovered from them; 2.5 However, the respondent i.e (Sh.Naresh Chawla, Owner of M/s Chawla Transport Company, Deeg Road, Kumher Gate, Bharatpur, Rajasthan) has voluntary deposited the amount of CGST ₹ 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities was already stopped and I also effected from this lockdown, from another penalty which imposed on me by the Order in Review No.93/Review/2020-21 dated 27.08.2020 passed by the Commissioner, CGST, Alwar (Raj). 6. Personal hearing in the instant case in virtual mode through video conference was held on 25.02.2021. Sh.G.R.Meena, Assistant Commissioner, Division-F, Bharatpura appeared for personal hearing on behalf of the department. He reiterated the grounds of appeal during personal hearing. He has nothing more to add besides the written submission. On the other hand Sh. Arun Kumar, Tax Consultant appeared for personal hearing on behalf of the respondent i.e. Sh. Naresh Chawla, Owner of M/s Chawla Transport Company, Deeg Road, Kumher Gate, Bharatpur, Rajasthan. He reiterated the cross objection submitted by his client. During PH he pleaded that the appeal filed by the department is beyond the period of appeal as prescribed under Section 107 of CGST Act, 2017, hence appeal is not maintainable. Further, he stated that the owner of the goods had authorized to the Transporter/his client to take necessary action/ or take part of any proceedings on behalf of them. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is on judicial stamp paper of ₹ 100/- in which the same plea has been reiterated. Further I also find that in this case, the appellant or department stated that while passing the Order dated 27.01.2020, the Adjudicating Authority has erred in instant order under Section 129(1) (a) instead of Section 129(1) (b) of the CGST Act, 2017 which resulted in short payment of penalty. Before deciding the issue, it would be proper to look into the relevant provision which is as under:- SECTION 129. Detention, seizure and release of goods and conveyances in transit. - (1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released, (a) on payment of the applicable tax and penalty equal to one hundred per cent of the tax payable on such goods and, in case of exempted goods, on payment of an amount e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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