TMI Blog2024 (3) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... se they failed to do so. The case of the petitioner is consistent that the driver was carrying digital copies of the tax invoice as well as e-Way Bill on his mobile number. The Revenue did not verify the digital device of the driver. If the assessee always had relevant documents in his favour, it stands to reason that there was no cause for him not to provide the digital copy of the e-Way Bill to the driver when the goods were being transported. After the driver had produced the digital copy of the tax invoice, it was the responsibility of the revenue to verify the same from the portal. The portal also contains the e-Way Bill which is auto populated after the e-Invoice uploaded. Evidently the Revenue failed to do so. The revenue cannot fasten the penalty upon the tax payers for its own default. The argument on behalf of the revenue to the effect that once the demand raised on the assessee was satisfied by making of payment, the assessee could not carry the order of penalty in appeal and is liable to be rejected - The assessee under Section 129(1) of the GST Act, 2017 has an option either to provide security or to make payment and satisfy the demand in full. However, the mere fact t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der from one M/s. Vaishnavi Electronics, Ghaziabad for supply of Copper Clad Laminte, etc. Upon receipt of the said order the petitioner prepared an e-Invoice No.766/2022-23 dated 04.01.2023 at 10.10 a.m. The e-Way Bill bearing No.721309051066 dated 04.01.2023 was auto generated at 10.13 a.m. after the petitioner had got the aforesaid invoice registered on the common GST portal. 8. According to the petitioner, both the e-Invoice as well as e-Way Bill were provided to the vehicle driver in the digital mode. The vehicle proceeded to its destination after the goods were loaded and the driver was provided with the necessary documentation. When the vehicle was intercepted by the revenue authorities, the driver produced e-Invoice as well as e-Way Bill. However, the revenue authorities conducted the physical inspection of the goods under transportation. At the time of the physical verification of the goods the representative of the petitioner firm appeared before the revenue authorities and presented hard copies of the e-Invoice No.766/2022-23 dated 04.01.2023 and e-Way Bill No.721309051066 dated 04.01.2023. The representative of the petitioner firm sought to demonstrate that the goods be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1), unless the appellant has paid (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order, in relation to which the appeal has been filed: [PROVIDED that no appeal shall be filed against an order under subsection (3) of section 129, unless a sum equal to twenty-five per cent of the penalty has been paid by the appellant.] (7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed. 13. The consistent case of the petitioner before the appellate authority as well as this Court is that the driver had produced the e-Invoice as well as e-Way Bill which were stored in his mobile number. However, the authorities failed to verify the same and initiated the impugned proceedings. Further, it is an admitted case that the hard copies of the tax Invoice as well as e-Way Bill were duly produced when the representative of the petitioner appeared before the Mobile Squad of the Revenue Department during the proceedings. 14. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be prescribed. (2) The details of documents required to be carried under sub-section (1) shall be validated in such manner as may be prescribed. (3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any place, he may require the person in charge of the said conveyance to produce the documents prescribed under the said sub-section and devices for verification, and the said person shall be liable to produce the documents and devices and also allow the inspection of goods. Section 129 - Detention, seizure and release of goods and conveyances in transit (1) Notwithstanding anything contained in this Act, where any person 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 a 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 two hundred per cent. of the tax payable on such goods and, in case of exempted goods, on paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the persons incharge of the conveyance are set out in Rule 138A (1), (2) and (3). The provisions/Rules insofar as they are relevant to the controversy are reproduced as under: Rule 138A. Documents and devices to be carried by a person in charge of a conveyance. (1) The person in charge of a conveyance shall carry- (a) the invoice or bill of supply or delivery challan, as the case may be; and (b) a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner: Provided that nothing contained in clause (b) of this sub-rule shall apply in case of movement of goods by rail or by air or vessel. Provided further that in case of imported goods, the person in charge of a conveyance shall also carry a copy of the bill of entry filed by the importer of such goods and shall indicate the number and date of the bill of entry in Part A of FORM GST EWB-01. (2) In case, invoice is issued in the manner prescribed under sub-rule (4) of rule 48, the Quick Reference (QR) code having an embedded Invoice Reference Number (IRN) in it, may be pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical form for all interState and intraState movement of goods. (2) The Commissioner shall get Radio Frequency Identification Device readers installed at places where the verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such device readers where the e-way bill has been mapped with the said device. (3) The physical verification of conveyances shall be carried out by the proper officer as authorised by the Commissioner or an officer empowered by him in this behalf: Provided that on receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be carried out by any other carried out by any officer after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf. 23. The aforesaid statutory scheme discloses the following the requirements which are relevant to the controversy: I. While transporting goods for purposes of trade, the driver and or the owner should be in possession of an e- Invoice as well as e-Way Bill. II. The assessee has an option to produce physical or digital copies of the aforesaid documents. III. The procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng digital copies of the tax invoice as well as e-Way Bill on his mobile number. The Revenue did not verify the digital device of the driver. If the assessee always had relevant documents in his favour, it stands to reason that there was no cause for him not to provide the digital copy of the e-Way Bill to the driver when the goods were being transported. After the driver had produced the digital copy of the tax invoice, it was the responsibility of the revenue to verify the same from the portal. The portal also contains the e-Way Bill which is auto populated after the e-Invoice uploaded. Evidently the Revenue failed to do so. The revenue cannot fasten the penalty upon the tax payers for its own default. 28. The argument on behalf of the revenue to the effect that once the demand raised on the assessee was satisfied by making of payment, the assessee could not carry the order of penalty in appeal and is liable to be rejected. 29. The assessee under Section 129(1) of the GST Act, 2017 has an option either to provide security or to make payment and satisfy the demand in full. However, the mere fact that the assessee has made payment will not disentitle him for carrying the order impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... summary of an order under Form DRC-07 cannot result in the right of the person to file an appeal under Section 107 being deprived. The fact that the system does not generate a demand or that the system does not contemplate the filing of an appeal without a demand does not mean that the intention of the legislature was different. 31. The aforesaid judgment squarely applicable to the facts of the case and the appeal is held to be maintainable. 32. This Court in M/s Galaxy Enterprises v. State of U.P. and 2 others [Writ Tax No.1412 of 2022] held that if rectified documents were produced before the authorities before the seizure order was passed, the same were liable to be considered. 33. The case of the petitioner stands on a better footing. 34. Since all the documents have been admittedly produced before the authorities at the time of inspection, there was no cause for detention, seizure or imposition of the penalty as has been done by the authorities in this case. 35. It is noteworthy that the revenue is not challenged the authenticity of the bills or the fact that they were not duly filled it or the details were absent in the said bills. No irregularity in the bills have been point ..... X X X X Extracts X X X X X X X X Extracts X X X X
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