9911796707
TMI Blog2025 (1) TMI 1362X X X X Extracts X X X X X X X X Extracts X X X X ..... ry to each other. The petitioner failed to prove that M/s Shifting Gears, Assam has purchased the said vehicle from Mr. Marto Lollen. The e-way bill relied by the petitioner for transportation of the car contrary to the Invoice-cum-Bill of Supply dated 13th May, 2023 and subsequent invoice submitted by the petitioner shows that no Tax was paid.
Conclusion - The invocation of Section 129 was appropriate given the inconsistencies in the transportation documentation and the failure to establish a clear chain of ownership and sale.
This Court did not find any illegality in the order passed by the respondent no. 2 dated 30th May, 2023 and thus the order does not require any interference - Petition dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... al, arbitrary and beyond the jurisdiction under Section 129 of the Act. 7. The petitioner in support of his submissions has relied upon the following judgments: i. Godrej Sara Lee Ltd. vs. Excise and Taxation Officer-cum-Assessing Authority and Others reported in 2023 SCC OnLine SC 95. ii. Goutam Bhowmick vs. State of West Bengal reported in (2024) 158 taxmann.com 399 (Calcutta). iii. Asian Switchgear (P.) Ltd.-vs-State Tax Officer reported in (2023) 157 taxmann.com 90 (Calcutta). iv. Qfroz Trades (P.) Ltd. -vs- Assistant State Tax Officer reported in (2023) 154 taxmann.com 83 (Kerala). v. Bharti Airtel Ltd. -vs- State of U.P. reported in 2022 SCC OnLine ALL 741. vi. M/s Skipper Limited vs. Union of India in Writ Tax No. 344 of 2018. vii. Assistant Commissioner (ST) and Others vs. Satyam Shivam Papers Pvt. Ltd. & Anr. reported in 2022 SCC OnLine SC 115. viii. Assistant Commissioner, State Tax vs. Ashok Kumar Sureka reported in 2022 SCC OnLine Cal 1654. ix. N.V.K. Mohammed Sulthan Rawther and Sons and Wilson -vs- Union of India reported in (2019) 101 taxmann.com 24 (Kerala). x. Hindustan Coca Cola (P.) Ltd. -vs- Assistant State Tax Officer reported in ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2017 and SGST Act, 2017 read with Rule 138A and read with Section 20 of the IGST Act, 2017, due to which provisions of Section 129 were invoked. 10. It is further stated that the car has been supplied by Shifting Gears, Assam and on verification of the GST registration details of Shifting Gears, Assam, it was found that Shifting Gears is a supplier of Motor Car and Motor Vehicle other than old and used Motor car. 11. The only question in the present writ application is whether the respondents have rightly invoked the provisions of Section 129 of the West Bengal Goods and Services Tax Act, 2017 or not? 12. Section 129 of West Bengal Goods and Services Tax Act, 2017 reads as follows: "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 detentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or are likely to depreciate in value with passage of time, the said period of fourteen days may be reduced by the proper officer." 13. The invoice-cum-bill of supply dated 13th May, 2023, issued by Shifting Gears in favour of the petitioner reveals that the petitioner has purchased the said car from Shifting Gears, Assam. In the said invoice, the address of the petitioner is mentioned as "C/o Car Zone, Sterling Centre, Next to Courtyard Marriot, Chakala, Andheri (E), Mumbai and the cost of the said vehicle was Rs. 26,00,000/- and paid CGST and SGST at the rate of 9% each, total amounting to Rs. 26,75,000/-. The e-way bill relied upon by the petitioner dated 14th May, 2023, shows that the vehicle was dispatched from Guwahati, Assam to Gurgaon, Haryana in the name of Mr. Marto Lollen in both the places. 14. When the conveyance was intercepted by the respondents wherein the said car was transporting, on verification of documents it was found that the tax invoice related to the supply of the said car was not available and the e-way bill dated 14th May, 2023 produced by the driver, it was found that the same was generated by Delivery Relocation Services of Gurgaon against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (63) of Section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods." In the Notification No. 1/2018-Compensation Cess (Rate) dated 25th January, 2018, the Government of India, Ministry of Finance (Department of Revenue) amended the Notification No. 1/2017 - Compensation Cess (Rate) dated 28th June, 2017, which reads as follows: "42A. All old and used motor vehicles Explanation: Nothing contained in this entry shall apply if the supplier of such goods has availed input tax credit as defined in clause (63) of Section 2 of the Central Goods and Services Tax Act, 2017, CENVAT credit as defined in CENVAT Credit Rules, 2004, or the input tax credit of Value Added Tax or any other taxes paid on such vehicles." In the present case, Input Tax Credit on the car has already claimed and utilized by M/s MMD & Brothers Enterprise, Proprietor Mr. Marto Lollen, Arunachal Pradesh on the very first instance, thus this Court is of the view that the margin value scheme is not applicable in the case of the petitioner. 18. This Court considered the judgments relied by the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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