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TMI Blog2021 (4) TMI 996X X X X Extracts X X X X X X X X Extracts X X X X ..... d Rules made thereunder. If the respondent was aggrieved with the said Order in Original he should have file separate appeal within the prescribed time limits - the cross objections filed by the respondent is beyond the purview of appeal. Therefore, it would not be proper to discuss the issues in the instant matter which are out of scope of the appeal. Whether penalty imposed under Section 129(1)(a) of CGST Act,2017 by the Adjudicating Authority is proper or not? - HELD THAT:- 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 it is found that 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 seized goods is 12,83,589/- therefore, penalty is stands modified to 6,41,795/- (rounded up) under clause (b) of sub section (1) of Section 129 of CGST Act, 2017 and the penalty already deposited by the respondent may be considered for appropriation accordingly. Appeal allowed in part. X X X X Extracts X X X X X X X X Extracts X X X X ..... ram (Prop) M/s Bullet Logistics, Padam Singh Road, Tank Road, Karol Bagh, New Delhi directing them to show cause, within fourteen days from the receipt of this notice, as to why the proposed tax and penalty under Section 129 (1) of the CGST Act,2017 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. 2.4 In view of the above, the transporter of the goods of conveyance Sh. Lekhram (Prop) M/s Bullet Logistics, Padam Singh Road, Tank Road, Karol Bagh, New Delhi came forward to pay such tax and penalty as proposed under Section 129 (1) of the CGST Act, 2017 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) Integrated Goods & Service Tax ₹ 68,346/- + penalty ₹ 68,346/- under Section 129 (1) of the CGST Act, 2017 should not be demanded and recovered from them; 2.5 However, the respondent i.e (Sh. Lekhram, Prop- M/s Bullet Logistics, Padam Singh Road, Tank Road, Karol Bagh, New Delhi has voluntary deposited through DRC-03 the amount of IGST ₹ 68,346/- and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Tax of ₹ 68,346/- and Penalty of ₹ 68,346/- for not tendering of E-way Bill during the physical verification of vehicle, which was incorrectly calculated by the Adjudicating officer. The Actual Tax Liability on Invoices for which E-way Bills not tendered is IGST ₹ 7519/- and Penalty ₹ 7519/- . According to this there is Refund of IGST of ₹ 1,21,654/- (IGST Tax ₹ 60,827/- and IGST penalty ₹ 60,827/-). 6. Personal hearing in the instant case in virtual mode through video conference was held on 25.02.2021. Sh. Ramdev Sharma, Chartered Accountant represented the case on behalf of M/s Bullet Logistics, Padam Singh Road, Tank Road, Karol Bagh, New Delhi he reiterated the written cross objection during personal hearing. Further, he add that the respondent was authorized as the owner of the goods by the various parties hence respondent is the actual owner in the case accordingly penalty imposed under Section 129(1) (a) is justified and proper. 7. On the cross objections, the appellant has filed the written submissions which are as under:- The respondent vide their cross objection dated 08.02.2021 have relied on grounds through mentioning Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case for consideration are as under : (a) Whether submissions made by respondent through cross objections are beyond the purview of appeal filed by the Appellant/Department ? (b) Whether penalty imposed under Section 129(1)(a) of CGST Act,2017 by the Adjudicating Authority is proper or not ? Now I take up the point No.(a)- In respect of point No.(a), respondent has taken a plea that there was no need to generate E way bill for the invoices having value less than ₹ 50,000/- and on this ground appellant has contended that the grounds have been taken by the respondent are beyond the purview of appeal filed by the department and if the party was aggrieved with the Order of the adjudicating authority they were required to file appeal under sub section (1) of Section 107 of the CGST Act, 2017 in accordance with Rule 109 of the CGST Rules, 2017 within prescribed time limit hence the claim of the respondent in their cross objections is not sustainable. On going through the case records and contention of both sides, I find that the appeal have been filed by the appellant being aggrieved with the penalty imposed under Section 109 (1) (a) of the CGST Act, 2017. Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods does not come forward to pay such tax and penalty. (c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed. (2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. (3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c). 10. On going through the records, I find that there is no dispute in the fact that the detained/seized goods were released by the Adjudicating Authority to the Transporter i.e. M/s Bullet Logistics, Padam Singh Road, Tank Road, Karol Bagh, New Delhi on payment of tax and penalty as determined by him as the actual owners of the goods did not come forward for release of the goods. Further, I find that the Adjudicating Authority has imposed the penalty equal to 100% of tax under Section 129 (1) (a) of CGST Act, 2017. In the instant case, it is fact on record that the owner of the goods failed to come forward for releas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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