TMI Blog2022 (9) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... 14- 09-2018 reveals that the purpose of issuing such a Circular was to mitigate the hardships being caused to taxpayers for minor discrepancies, which had no bearing on the liability to tax or on the nature of goods being transported. The circular is statutory in nature and is binding on the Tax Officers. Thus minor discrepancies cannot be penalized contrary to the mode and procedure contemplated under the Circular. In the instant case, the discrepancy pointed out is only on the date of invoice which is shown as 03.02.2021 while that shown in the e-way bill was 02.03.2021. All other details in the invoice and the e-way bill including the nature of goods transported, the details of consignor and consignee, the GSTIN of supplier and recipient, place of delivery, invoice number, value of goods, HSN code, vehicle number etc. tallied and had no discrepancy. Thus the error noticed is insignificant and not of any consequence for invoking the power conferred under section 129 of the Act to impose tax and penalty. The situation arising in the instant case, warranted imposition of only a minor penalty as contemplated under the Circular. In view of the above, the imposition of tax and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel for the petitioner would contend that there was no warrant for imposing any penalty on the petitioner in the facts and circumstances of the case. It is submitted that there is no suppression or evasion of tax. It is submitted that the e-way bill was valid up to 11.59 p.m. on 8.7.2019, and the vehicle was intercepted the next day. It may be noted here that though the writ petition proceeds (based on the endorsement in Ext.P1), that the vehicle was intercepted at 12.20 a.m. on 9.7.2019, it is clear from a reading of Ext.P3 that the detention was at 12.20 p.m. on 9.7.2019. It is pointed out by the learned counsel that the vehicle had failed to cross the check post on 8.7.2019 itself because it developed some mechanical problems on its way to Kozhikode and had to be taken to a workshop and also since the Bandipur Highway was closed during night hours. He also relied on Ext.P6 judgment of this Court to contend that for minor discrepancies,a major penalty cannot be imposed. He also relied on the judgment of the Madras High Court in WMP (MD) No.4567/2020 to contend that where there is only a technical breach and no intention to evade tax, there is no justification for imposing a hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the e-way bill is absolutely incorrect. She states that the detention was at 12.20 p.m and the indication in Ext.P1 that the detention was on 12.20 a.m. is a genuine mistake. She relied on the judgment of a Division Bench of this Court in Ranjilal Damodaran v. Asst. State Tax Officer and another; 2020 SCC OnLine Ker 23975 , to contend that the petitioner could not have been allowed to continue the transport without extending the validity of the e-way bill as provided under Rule 138 (10) of the CGST Rules. It is submitted that though there is an enabling provision, the transport could not have continued without extending the validity of the e-way bill. She also placed reliance on the judgment of a learned Single Judge of this Court in Podaran Foods India Pvt. Ltd and others v. State of Kerala and others; 2021 (1) KHC 471 , to reiterate the scheme of Section 129 of the Act. It is contended that since it is the admitted case of the petitioner that the e-way bill had expired when the detention was effected, there is absolutely no jurisdictional error or infirmity warranting interference with Ext.P3 at the hands of this Court under Article 226 of the Constitution of India at this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed) The Learned Judge also held as follows:- It has to be borne in mind that Section 129 forms part of the machinery provisions under the Act to check evasion of tax and a detention can be justified only if there is a contravention of the provisions of the Act in relation to transportation of goods or their storage while in transit. The reason for invoking Section 129 of the CGST laws in this case, is only one - that the e-way bill has expired. A Division Bench of this Court in Renjilal Damodaran's case (supra), no doubt, observed that transport could continue only after e-way bill had been extended in the manner provided for in Rule 138(10) of the CGST Rules. However, the said finding does not compel me to take a view different from the view taken by the Telangana High Court in Satyam Shivam's case (supra) as the Division Bench has not considered the question as to whether the imposition of a major penalty along with a demand for IGST was justified for the reason that the e-way bill had expired. In the facts of the present case, it is clear from a reading of Ext.P3 that the vehicle (the goods) was accompanied by an invoice which showed the value of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r two digits of the document number mentioned in the e-way bill; e) Error in 4 or 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct; f) Error in one or two digits/characters of the vehicle number. 6. In case of the above situations, penalty to the tune of Rs.500/- each under section 125 of the CGST Act and the respective State GST Act should be imposed (Rs.1,000/- under the IGST Act) in FORM GST DRC-07 for every consignment. A record of all such consignments where proceedings under section 129 of the CGST Act have not been invoked in view of the situations listed in paragraph 5 above shall be sent by the proper officer to his controlling officer on a weekly basis. 9. A reading of the above statutory Circular reveals that the purpose of issuing such a Circular was to mitigate the hardships being caused to taxpayers for minor discrepancies, which had no bearing on the liability to tax or on the nature of goods being transported. The circular is statutory in nature and is binding on the Tax Officers. Thus minor discrepancies cannot be penalized contrary to the mode and procedure contemplated under the Circular ..... X X X X Extracts X X X X X X X X Extracts X X X X
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