9911796707
TMI Blog2020 (6) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... r has not only imposed the tax liability of Rs. 50,78,031/-, but has also imposed a penalty of the same amount upon the petitioner, the petitioner has challenged the said impugned order before this Court. The brief facts of the case are that the petitioner is a Private Limited Company registered under the Companies Act, 1956, having its registered office in Pune. The petitioner Company is engaged in the business of manufacturing heavy equipments such as Hydraulic Excavators, Concrete Machinery, Mining Machinery, Crawler Excavator, Truck Crane, etc. According to the petitioner, M/s. Madhura Engineering Services Private Limited entered into the "Machine Demo Activity Agreement" (MDAA) on 21.01.2020 for the sole purpose of demonstration and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent No.1, the State Tax Officer, who after checking the necessary papers, detained the consignment. The respondent No.1 issued the Form GST MOV 07 to the driver of the vehicle, whereby the respondent demanded the IGST to the tune of Rs. 50,78,031/-, and the penalty of an equal amount, thus totalling to Rs. 1,01,56,062/- on the value of the consignment, which was declared to be Rs. 2,82,11,287/-. Having received the said notice, the petitioner immediately sent a reply on 05.02.2020 raising several objections to the notice. Moreover, without prejudice, the petitioner submitted a bank guarantee drawn on ICICI Bank for an amount of Rs. 1,01,56,062/-. In view of the bank guarantee, the petitioner's goods were released on 13.02.2020. But ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entions in the impugned order. Therefore, the impugned order deserves to be set aside. On the other hand, Mr. Govind Reddy, the learned Government Pleader for Commercial Tax, submits that the nature of the transaction is absolutely immaterial as far as Section 7 of the Act is concerned. In fact, Section 7 of the Act defines the word "supply". Since it is an inclusive definition, it is an exhaustive one. According to the definition, even a transfer of goods is covered under the said provision. Therefore, when the movement of consignment begins its journey from point A to point B, it is said to be transferred from the consignor to the consignee. Hence, whether the goods were being sent for the purpose of demonstration, or on a return ..... X X X X Extracts X X X X X X X X Extracts X X X X
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