Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Central Goods and Services Act |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Act(s) Referred | West Bengal Goods and Services Tax Act, 2017 (28 of 2017) Central Goods and Services Tax Act, 2017 (12 of 2017) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Issue for consideration: Consignment was intercepted in the course of inter-state movement, as there was no valid E-way bill. High Court directed that the goods be released subject to payment of the entire amount of the Goods and Service Tax in cash and 50% of the penalty imposed also in cash while the remaining 50% by way of bank guarantee Central Goods and Services Act, 2017 – West Bengal Goods and Services Act, 2017 – Integrated Goods and Services Tax Act, 2017 – Appellant executed work contracts for GAIL in the State of UP in Auraiya district, including work in the State of West Bengal – It availed services of one M/s. HFC for mobilising a machine-the consignment (capital goods under CGST Act) used for execution of works contracts from Auraiya, UP to Durgapur, West Bengal, for which an E-way Bill was generated – However, as transportation was not done within the validity period of the E-way bill, the consignment was intercepted and order of detention was issued, at the time of entering the State of West Bengal – Consignment and the vehicle detained – Order of demand of tax and penalty passed – Eventually, High Court inter alia, directed that the goods be released subject to payment of the entire amount of the Goods and Service Tax in cash and 50% of the penalty also in cash while the remaining 50% by way of bank guarantee – Challenged – Present consideration confined only to the quantum of penalty:Held: Appellant was saddled with tax – Law also provides for imposition of penalty – Ordinarily, this Court would have refrained from interfering, but because there was an E-way bill that was generated and in view of the factual scenario which is not disputed that the appellant is the owner of the consignment and was using it in connection with its contractual obligations in Uttar Pradesh and then having a similar contract in West Bengal and no evidence had been placed on record showing that the consignment was to be sold/used for any other purpose in respect of any other party, the orders passed by the High Court varied – ₹ 54,00,000/- being the tax imposed is upheld however, penalty is reduced to 50% of the penalty imposed and would now be ₹ 27,00,000/- – ₹81,00,000/- be paid by the appellant (subject to payment already made) – Upon the same being done, the transportation vehicle as also the consignment be released – Present order passed u/Article 142 and shall not be a precedent. [Paras 18, 17, 19 and 20] |
Judge | N/A |
Neutral Citation | 2023 INSC 1087 |
Petitioner | Vardan Associates Pvt. Ltd. |
Respondent | Assistant Commissioner Of State Tax Central Section & Ors. |
SCR | [2023] 16 S.C.R. 1118 |
Judgement Date | 2023-10-31 |
Case Number | 8302 |
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