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TMI Blog2024 (8) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. With the consent of the learned counsel for the parties, the instant writ petition is being decided finally without calling for the counter affidavit. Learned counsel for the petitioner submits that the petitioner is a registered Company and is engaged in the business of manufacture and sale of PP bags/PP Woven Sacks, etc. On 12.06.2018, an inspection/search under section 67 of the GST Act was conducted at the business premises of the petitioner by the SIB and the stock was assessed on the basis of eye measurement and it was held that excess stock was found. He further submits that the actual weighment of the stock was not done by the respondents - authorities. He further submits that the proceedings under section 30 of the GST Act cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing observations have been made:- "22. From the perusal of the scheme of the Act and the statutory provisions what emerges is that Section 9 of the CGST is the charging section which provides for levy of tax on supplies of goods or services. Section 12 of the CGST Act provides for time on which the tax are to be paid and elaborates the "time of supply of goods" and Section 12 (2) clearly provides that the "time of supply of goods" is the date of issue of invoices or the date of receiving of the payment in respect to such supplies. 23. Section 35 (1) clearly provides that all the registered person are required to keep and maintain at the principal place of business a true and correct account of things specified in Clause (a) to (f). T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice. (2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable. (8) Where any person chargeable with tax under sub-section (1) pays the said tax along with interest payable under section 50 and a penalty equivalent to twenty-five per cent. of such tax within thirty days of issue of the notice, all proceedings in respect of the said notice shall be deemed to be concluded. (9) The proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of tax, interest and penalty due from such person and issue an order. (10) The proper officer shall issue the order under sub-section (9) within a period of five ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service of notice as claimed by the respondent satisfies the requirement contemplated under Section 169 of the GST Act? (IV). Whether the valuation of goods can be done on the basis of eye estimation alone and on the basis of production capacity and/ or the consumption of electricity etc? 11. The issue raised herein in Issue no.I is marked resemblance to facts referred in the judgment of this Court in the case M/s Metenere Limited (supra) wherein on the basis of a similar search conducted, the demand was quantified. This Court after analysing the provisions of the Act and the Rules applicable held that for the infractions as contained in Section 122 of the GST Act and specified in Column ''A' of paragraph 35 of the said jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lying in excess of the goods in record, the case against the petitioner would not fall under Clause (ii) of sub-section (1) of Section 130 for the simple reason that the liability to pay the tax arises at the time of point of supply, and not at any point earlier than that. On a plain reading, the scope of Clause (ii) of sub-section (1) of Section 130 is that any assessee who is liable to pay tax and does not account for such goods, after the time of supply is occasioned, would be liable to penalty under Clause (ii). Analyzing Clause (iv) of sub-section (1) of Section 130, the contravention of any provision of the Act or the Rules should be in conjunction with an intent to evade payment tax and penalty can be levied by invoking Clause (iv) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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