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TMI Blog2022 (9) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... GEDCO. TANGEDCO is in the process of establishing of 2 x 660 MW Super Critical Thermal Power Project at Udangudi, Thoothukudi District. All India Road Transport Agency name was not recorded in the transport invoices. But, the consignment notice has been rightly recorded, which finds place in the bills. The e-way bill is dated 26.07.2022, in which, the other details such as, e-way bill number, GSTIN number of the supplier and recipient, place of despatch, place of delivery, document number and code are all properly recorded. It is seen that for calculation of applicable penalty, valuation has been done, thereafter, the freight charge at the rate of 2% and gross profit at the rate of 10% taken into account and penalty imposed against the petitioner. As per the Circular of the Commissioner, the Intelligence/Roving Squad detained the vehicles and thereafter, all the records to be handed over to the Jurisdictional Officer or to the Review Cell and thereafter, it is for the Jurisdictional Officer to pass orders on the point of classification and valuation - it is not in dispute that the pipe conveyor belt is a customized article, which is used exclusively for the project of TANGEDC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of captive coal jetty with unloading facility and pipe conveyor system for their thermal project at Udangudi, Thoothukudi District. Subsequent to the same, ITD Cementation India Limited entered into a back to back EPC contract with the petitioner for supply of jetty and pipe conveyor system together with allied electrical, instrumentation and control works. 3.The petitioner Company was issued with the letter of indent by ITD Cementation India Limited. The petitioner opened a site office within the radius of 1.5 Kms. from the work site of TANGEDCO and obtained GST Registration No.33AABCO7599L1ZT, for the purpose of stock transferring of certain machineries, equipments and other materials required for execution of the contract from the premises of the petitioner at West Bengal. The site office of the petitioner is not involved in any supply of goods or services till date and thereby, filing Nil returns. Consequent to the letter of indent, the petitioner placed purchase order with M/s.Phoneix Conveyor Belt India Private Limited, West Bengal, for supply of steel cord pipe conveyor belts and splicing kits to be supplied to ITDC. As per the purchase order, the supplies to be made to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Engineering Ltd., Macmet House, 10B, O.C.Ganguly Sarani, Kolkatta 700 020. Macmet Engineering Ltd., C/o.TANGEDCO, 1st Floor, Ponpalani Villa, Kurinji Nagar. LOI of ITD, dated 28.02.2019, mentioned in the invoice. The purchase order reference number of petitioner also mentioned in the invoice. E-way bill No. 8512 4192 4431, dated 26.07.2022 M/s.Macmet Engineering Ltd., West Bengal. Door No.1/363-15, No.17, 1st Ward, Kurinijinagar, Veerapandiapattinam, Tiruchendur. Place of delivery is shown as Veerapandiapattinam, Tiruchendur. W.P.(MD)No.19396/2022:- Document Reference Bill to Address Ship to Address Other details Invoice No. 2220000502, dated 25.07.2022 M/s.Macmet Engineering Ltd., Macmet House, 10B, O.C.Ganguly Sarani, Kolkatta 700 020. Macmet Engineering Ltd., C/o.TANGEDCO, 1 st Floor, Ponpalani Villa, Kurinji Nagar. LOI of ITD, dated 28.02.2019, mentioned in the invoice. The purchase order reference number of petitioner also men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d., Macmet House, 10B, O.C.Ganguly Sarani, Kolkatta 700 020. Macmet Engineering Ltd., C/o.TANGEDCO, 1 st Floor, Ponpalani Villa, Kurinji Nagar. LOI of ITD, dated 28.02.2019, mentioned in the invoice. The purchase order reference number of petitioner also mentioned in the invoice. E-way bill No. 8912 4172 2316, dated 25.07.2022 M/s.Macmet Engineering Ltd., West Bengal. Door No.1/363-15, No.17, 1st Ward, Kurinijinagar, Veerapandiapattinam, Tiruchendur. Place of delivery is shown as Veerapandiapattinam, Tiruchendur. 5.Five vehicles were intercepted by the State Tax Officer (Int.) Roving Squad (Addl.), Madurai, on 02.08.2022 at 03.45 pm. at Madurai Tirunelveli Bye-pass, near Thirumangalam, Madurai. The second respondent detained the vehicle under Section 68(3) of the CGST Act read with Section 129(1) of the CGST Act and Section 20 of the IGST Act read with Section 68(3) of the CGST Act. Following the same, show cause notice dated 04.08.2022 in Form MOV 07 issued on the allegation that the vehicles carried consignments under 'Bill to Ship to' concept, but the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them, the petitioner had given purchase order to procure materials to be used for the work of TANGEDCO to Phoenix Conveyor Belt India Private Limited, by their purchase order dated 23.08.2021, with a direction to deliver the materials at the site of TANGEDCO, Udangudi, Tirunelveli. The materials detained by the second respondent in respect of the materials supplied by Phoenix Conveyor Belt India Private Limited based upon the petitioner's purchase order, wherein materials were moved from the State of West Bengal to the State of Tamil Nadu based on the invoices raised by Phoenix Conveyor Belt India Private Limited and e-way bills generated based on the said invoices. 9.Further, referring to Rule 138-A of the CGST Rules, the petitioner submitted that the invoice or bill of supply or delivery challan, as the case may be, and a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance as notified by the Commissioner to be carried on by the person in-charge of conveyance of goods. 10.In this case, the conveyance of the materials was initiated by virtue of the invoice is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders or decisions passed by the Roving Squad or Adjudicating Cell, along with the relevant records to be handed over to the Review Cell, within two days of passing such orders or decisions. Further, the learned counsel submitted that the petitioner Company is a reputed Company, having 300 crores turnover. It is not a fly-by-night Company. The petitioner produced Letter of Indent [LoI] issued by the ITD Cementation India Ltd., wherein the supply, price details and liabilities are all been clearly mentioned. The purchase order of the petitioner issued to Phoenix Conveyor Belt India (P) Ltd., had been produced, wherein it is clearly stated that ITD Cementation India Limited, is the place where the goods to be shipped. Further, joint Inspection Report of pipe conveyor belt for Udangudi Coal Jetty Project, issued by the TANGEDCO, M/s.ITD Cementation India Limited and the petitioner Company had been annexed. Phoenix Conveyor Belt India (P) Limited, in the tax invoice, has mentioned the receiver as Macmet Engineering Ltd., Kolkata [petitioner's head office], and in the consignee (shipped to) name column, it has been wrongly mentioned as 'Macment Engineering Ltd., [the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o' for e-way bill under CGST Rules, 2017 in Serial No. 2. It is mentioned that in this complete scenario, two supplies are involved and accordingly, two tax invoices are required to be issued. Invoice 1 would be issued by 'B' to 'A'. Invoice -2 would be issued by 'A' to 'C', where 'A' is Consignee [Bill to], B is Consignor (Dispatched from) and 'C' is recipient (Ship to). As per Rule 138-A(1) of the TNGST Rules, the person in charge of a conveyance shall carry, - (a) the invoice or bill of supply or delivery challan, as the case may be; and (b) a copy of the e-way bill in physical form or the e- way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner. 16.As per Section 31(1) of the TNGST Act, 2017, a registered person supplying taxable goods shall, before or at the time of, - (a) removal of goods for supply to the recipient, where the supply involves movement of goods; or (b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07.2022. From the invoice and e-way bills produced before the Roving Squad Officials, it is seen that the supply is to be made to the petitioner's head office and despatched [Shipped to] again to the petitioner herein at Udangudi. Though the petitioner stated that TANGEDCO is registered as additional place of business by ITD Cementation India Ltd., on inspection, it was found that TANGEDCO approved the supply of 9950 meters of pipe conveyor belts to be transported from the premises of M/s.Phoenix Belt Conveyor India Private Limited, West Bengal, to the work site in 34 reels. 18.Further, the joint inspection was conducted by TANGEDCO, ITD Cementation India Ltd., and the petitioner between 20.06.2022 and 28.06.2022. As per the invoice, the purchase order is dated 06.07.2022. Further, as per Rule 138(A) of the CGST Rules, 2017, the person in charge of conveyance shall carry the invoice or bill of supply or delivery challan, as the case may be, and a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be noticed by the Commissioner. As per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tractor to M/s.ITD Cementation India Ltd., for the supply of jetty and pipe conveyor system together with allied electrical instrumentation and control works on EPC back to back basis between TANGEDCO and ITD Cementation India Limited. ITD Cementation India Limited had given letter of indent to the petitioner on 28.02.2019. The petitioner had issued purchase order to procure materials from M/s.Phoenix Conveyor Belt India Private Limited for the purchase of pipe conveyor belts and its accessories to be used for the work at TANGEDCO. TANGEDCO is in the process of establishing of 2 x 660 MW Super Critical Thermal Power Project at Udangudi, Thoothukudi District. For establishment of captive coal jetty with unloading facility and pipe conveyor system, the petitioner was given a sub-contract. Thereafter, the petitioner placed purchase order with M/s.Phoenix Conveyor Belt India Private Limited. The pipe conveyor belts have been transported in 34 vehicles, out of which, 14 vehicles have already reached the destination namely, ITD Cementation India Limited site at TANGEDCO, Tiruchendur. 23.Five vehicles have been intercepted by the Roving Squad Officials and it was found that the transpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been rightly recorded, which finds place in the bills. The e-way bill is dated 26.07.2022, in which, the other details such as, e-way bill number, GSTIN number of the supplier and recipient, place of despatch, place of delivery, document number and code are all properly recorded. 25.The second respondent Roving Squad intercepted the vehicles and found that the invoice raised by M/s.Phoenix Conveyor Belt India Private Limited, the name of recipient namely, ITD Cementation India Limited found missing. That is the only mistake committed. Thereafter, show cause notice issued. The petitioner's authorized representative appeared and clarified the doubts raised. The contract is EPC back to back basis. The main contractor is TANGEDCO. In the invoices and e-way bills generated by M/s.Phoenix Conveyor Belt India Private Limited , 'Ship to' address is correctly mentioned. The only mistake is that the name of the consignee namely, ITD Cementation India Limited, is found missing, instead, it is mentioned the name of the petitioner Company at Tamil Nadu. 'Ship to' address is correctly mentioned in the invoices. Charging IGST for supply of goods, the Commercial Tax Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... District. Further, out of 34 vehicles, apart from 5 vehicles, which have been detained by the second respondent, 14 vehicles have already reached the TANGEDCO site and 15 vehicles are in transit and the mistake in the Invoice/Bill has occurred and the same can be clarified/rectified. The jurisdictional Tax Officer would be the right person to decide the mistake and to be found whether there is loss of revenue or evasion of duty. In view of the error committed by the second respondent, the learned counsel prays that the detention orders passed by the second respondent are liable to be quashed. The petitioner may be directed to execute a bond for the demand/penalty. 29.Further, in similar circumstances, this Court in the case of Jeyyam Global Foods Pvt. Ltd. Vs. Union of India [2019 (21) GSTL 465 (Mad.)] , had held that if there is bona fide dispute, it is only the jurisdictional assessing officer to decide the issue and it is not by the Roving Squad Officers. 30. In N.V.K.Mohamed Sulthan Rawther and sons vs. Union of India [2019 (20) G.S.T.L. 708 (Ker.) , it is reiterated that the assessing authorities to adjudicate with regard to classification. In the case of Shri Venk ..... X X X X Extracts X X X X X X X X Extracts X X X X
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