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TMI Blog2023 (8) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 2017 on 29.12.2022 and the following discrepancies were noticed. As per the invoice goods are transported from Chennai to Tiruppur. At the time of interception, goods are moving from Tiruppur to Chennai. It is presumed that goods are returnable due to unfructified sales. However in terms of sec 34 of the Act any goods returned due to unfructified sales it should accompanied with delivery challan/credit/debit note. In this case the taxable person has failed to issue the credit/debit note. Therefore, the goods under movement is treated as movement without document prescribed under sec 34 read with rule 55 of the Act thereby invoking sect 129 is warranted. Accordingly penalty under sec 129 of the Act is levied. 3. In view of the above, the goods and the conveyance used for the movement of goods were detained under subsection (3) of section 68 of the Central Goods and Services Tax Act, 2017 and sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 read with subsection (3) of section 68 of the State/Union Territory Goods and Services Tax Act, 2017 or under section 20 of the Integrated Goods and Services Tax Act, 2017 read with subsection (3) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manner as may be notified by the Commissioner." 9. It is submitted that invocation of Section 129(3) of the respective GST enactments was unwarranted. The reasons given in the detention notice was unsustainable and prayed for quashing of the notice. 10. The learned counsel for the petitioner would further submit that since the goods were at the risk of further getting deteriorated, the petitioner paid the penalty to salvage the wet and damaged goods back to the factory. 11. Arguing on behalf of the respondents, the learned Government Advocate would submit that payment having been made, the question of passing an order under Section 129(3) of the respective GST enactments did not arise in the light of the Section 129(5) of the respective GST enactments. 12. It is submitted that the petitioner had voluntarily paid the amount to by-pass the Show Cause Notice proceeding that was issued on 30.12.2022 in Form GST MOV-07. It is further submitted that in the Show Cause Notice dated 30.12.2022, the petitioner was also called upon for a personal hearing on 02.01.2023 at 12.00 p.m. Thus, the question of passing a final order under Section 129(3) in Form MOV - 09 did not arise as the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 233014806, 102233014807 dated 25.12.2022. On 28.12.2022 verification of the vehicle with reveals that, goods returned from Tirupur to Chennai. Mention that of 'E' way bill raised from same tax invoice no but reason of the transpiration (sic) for supply from Tirupur to Chennai. But reason of the transpiration goods return from Tirupur to Chennai. And not create the Credit note. On account of sales return by the buyer. Hence the tax payer fails to issue Credit note under sec 34 of SGST Act 2017 and Hence the tax payer intent to evade tax for the present movement of goods." 20. A reading of the above discrepancy that was noticed indicates that according to the Roving Squad, no Credit Note was issued for return of the goods that was being re-transported back to the petitioner's factory as is contemplated under Section 34 of the respective GST enactments. 21. Under Section 34(1) of the CGST Act, where one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son 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 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 detention or seizure, shall be released,- (a) on payment of the applicable tax and penalty equal to one hundred percent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two percent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty percent of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five percent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty; (c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial number not exceeding sixteen characters, in one or more multiple series, containing alphabets or numerals or special characters-hyphen or dash or slash symbolised as "-" and "/" respectively, and any combination thereof, unique for a financial year; (d) date of issue of the document; (e) name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient; (f) name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is unregistered; (g) serial number(s) and date(s) of the corresponding tax invoice(s) or, as the case may be, bill(s) of supply; (h) value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and (i) signature or digital signature of the supplier or his authorised representative." 32. The petitioner has to merely declare the details of the Credit Note in the monthly return during which Credit Note is issued for adjustment of tax liability. 33. The question of issuing Credit Note also will arise only by the supplier and not by the recipient. 34. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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