2023 (5) TMI 1122 - HC - GST

Levy of tax and penalty - E-way Bill lost its validity without any finding of evasion of tax - Section 129(1) and (3) of CGST Act - HELD THAT - Since the petitioner has an alternative remedy of an appeal which he has already availed of in terms of Section 107 of the JGST Act by filing the same manually which is being kept dormant by the Department this writ application is disposed off with a direction to the Joint Commissioner (Appeals) Dhanbad Division Dhanbad to dispose of the appeal preferred by the petitioner manually expeditiously and preferably within a period of eight weeks from the date of receipt/ production of a copy of this order since it has been submitted by the learned counsel for the petitioner that the memo of appeal submitted manually contains all the grounds on which he has assailed the impugned order dated 19.02.2021. It is once again made clear that the Joint Commissioner (Appeals) Dhanbad Division Dhanbad is to decide the appeal as directed on the basis of the memo of appeal submitted manually by the petitioner and which is said to be lying dormant.

Summary

Issues:
The issues involved in the judgment are the jurisdiction of the State Taxes Officer under the Central Goods & Services Tax Act, 2017 for an inter-state transaction, the imposition of tax and penalty based on the validity of an E-way bill, and the availability of an alternative remedy by way of appeal under Section 107 of the JGST Act.

Jurisdiction of State Taxes Officer:
The petitioner sought a direction to show cause regarding the proceedings under Section 129(1) and (3) of the Act, questioning the authority of the State Taxes Officer for an inter-state transaction governed by the Integrated Goods & Services Tax Act, 2017. The order imposing tax and penalty was challenged on the grounds that the E-way Bill had expired without any evidence of tax evasion. The High Court considered the petitioner's argument and directed the disposal of the appeal by the Joint Commissioner (Appeals) expeditiously.

Validity of E-way Bill and Imposition of Tax:
The factual background revealed that the petitioner had dispatched goods with a valid E-way bill, which was later found to have expired upon entering the State of Jharkhand. Subsequently, tax and penalty were imposed on the petitioner without any finding of tax evasion. The Court acknowledged the events leading to the detention of the goods and the issuance of notices but emphasized the importance of a proper assessment before imposing penalties.

Alternative Remedy of Appeal under Section 107 of JGST Act:
The Court referred to a previous order in a similar case where the petitioner was granted liberty to approach the appellate authority against the impugned order. It was highlighted that the petitioner had already filed an appeal manually, which was not being processed by the Department. The Court directed the Joint Commissioner (Appeals) to expedite the disposal of the appeal within eight weeks based on the grounds raised in the manual appeal submitted by the petitioner.