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TMI Blog2025 (3) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... y respondent no. 1 in Appeal No. GST/110/2020-21 (A.Y. 2021-22) under Section 129 (3) of IGST/CGST Act. 4. Learned counsel for the petitioner submits that petitioner is a proprietorship firm having GSTIN No. 18BPUPT4581B1ZB and is engaged in the business of trading of pan masala and scented tobacco. He submits that in the normal course of business, the petitioner has received an order for supply of pan masala and scented tobacco from various registered dealers situated at Delhi and in pursuance of the aforesaid order tax invoice dated 15.9.2021 was raised on which IGST, cess was charged. Since the value of the goods was less than the prescribed limit, therefore, e-way bill was not generated and through tax invoice nos. 41 to 45 dated 15.9.2021, the goods were transported from West Bengal/ Assam to New Delhi and during its onward journey the same was transshipped at Kanpur where the same was intercepted. The statement of the truck driver was recorded wherein he stated that the goods were loaded from Kanpur and on the said premise, show cause notice was issued to which the petitioner submitted its reply that crossing challan prescribed under the Act was accompanying the goods showin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n mentioned/ shown at any stage of the proceeding to prove that actual movement of the goods had taken place from West Bengal / Assam, however when the vehicle was detained at Kanpur then on physical verification, the movement of the goods was not found genuine, therefore, the proceedings were rightly initiated. 10. He further submits that the petitioner has utterly failed to bring on record any cogent material in order to prove the movement of the goods in question from West Bengal / Assam to Delhi. He further submits that the statement of Driver has not been rebutted at any stage of the proceedings. 11. In support of his submission, learned ACSC has relied upon the judgement of this Court in the case of M/s Ghata Mehandipur Balaji Grinding Works Pvt. Ltd. Vs. Commissioner Commercial Tax, UP Govt. Lucknow (Trade Tax Revision No. 15 of 2014) decided on 25.3.2014. 12. Rebutting to the aforesaid submission, learned counsel for the petitioner submits that even assuming without admitting that the goods were loaded from Kanpur, still, no adverse inference can be drawn against the petitioner on the ground of under valuation. 13. After hearing learned counsel for the parties, the Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0; हैः- परिवहन के समय चेकिंग पर प्रस्तुत प्रपत्रों के अनुसार माल का परिवहन असम व पश्चिम बंगाल से दिल्ली हेतु किया जा रहा है जबकि वाहन चालक द्वारा सशपथ बयान में स्वीकार किया गया है कि प्रश्नगत माल उनके द्वारा द& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5;ो इन तिथियों में पश्चिम बंगाल व असम से कानपुर आना प्रदर्शित नहीं पाया गया। उपर्युक्त तथ्यों के आधार पर यह स्पष्ट है कि कानपुर में निर्मित माल पान मसाला एवं सेन्टेड जर्दा को कानपुर से प्रश्नगत वाहन में लोड ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57;ीकार / अस्वीकार किया जाता है। जारी नोटिस के क्रम में विक्रेता फर्म सर्वश्री जया ट्रेडर्स असम (GSTIN - 18BPUPT4581B1ZB) के अधिकृत प्रतिनिधि श्री अमित कुमार पुत्र श्री राम गोपाल, निवासी- 133P/ 105, ट्रांसपोर्ट नगर, कानपुर नगर उपस्थित हु ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ा गया है, के सम्बन्ध में कोई उत्तर दाखिल नही किया गया है। कानपुर में निर्मित माल को कानपुर से लोड कर असम में स्थित फर्म द्वारा दिल्ली की फर्म हेतु जारी इनवाइस के आधार पर माल को परिवहित क्यों किया जा रहा है, इस बì ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57;श्री ग्रीन्सवर्थ इण्टरप्राइजेज प्रा०लि० (GSTIN-09AAJCG0608CIZZ) पता - C9, A/2, A-5 AND A-6 SIDE-1, PANKI INDUSTRIAL AREA, KANPUR NAGAR द्वारा निर्मित होने तथा माल को कानपुर से ही लोड किये जाने के तथ्य, के साथ यह भी इंगित किया गया है कि प्रश्नगत मामले में सुनियोजित ढ़ंग से वास्तव ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1;छादित है। इस प्रकार के छद्म/कूटरचित प्रपत्रों की रचना करते हुए प्रश्नगत वाहन में लोड माल की मात्रा भी प्रपत्रों के अनुसार सुनिश्चित करना विक्रेता फर्म की करापवंचना की विधि (MODUS OPERANDI OF TAX EVASION) को स्पष्ट करता है तथा उनक ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case, the petitioner has utterly failed to bring on record any cogent material for transporting the goods from West Bengal / Assam to Delhi via Kanpur. Once the petitioner has failed to prove the true/ actual movement of the goods from West Bengal / Assam to Delhi, the seizure proceedings cannot be said to be unjustified. 23. The Hon'ble Apex Court in the case of State of Karnataka Vs. M/s Ecom Gill Coffee Trading Pvt. Ltd. (Civil Appeal No. 230 of 2023) decided on 13.3.2023 has held that burden was upon the dealer to prove beyond doubt its claim. Further, the Apex Court has emphasised in the said judgement that if the dealer is claiming any exemption, then burden to prove the genuineness of the transaction is upon the person claiming the benefit. On that background, the Hon'ble Apex Court has held that dealer has to prove the actual physical movement of the goods. 24. Following the said judgement, this Court in the case of M/s Shiv Trading Vs. State of UP and others (Writ Tax No. 1421 of 2022) decided on 28.11.2023 has held that onus to prove and establish beyond doubt the actual transaction, physical movement of the goods as well as genuineness of transaction is req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the actual journey as claimed by the petitioner was not proved, the proceedings cannot be said to be illegal or arbitrary. 33. Section 129 of the GST Act refers that any person transports any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, the said goods shall be liable to be detained or seized. 34. Under the GST Act, the tax invoice has to be issued in terms of Section 31 of the Act, which prescribes every registered dealer supplying the taxable goods before or at the time of removal of such supply of goods shall issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed. 35. Rule 46 (j) and (k) of GST Rules also prescribe the particulars to be mentioned in the tax invoice i.e. total value of supply of goods and taxable value of supply of goods. 36. On bare reading of said Sections as well as the Rules, it clearly shows that the intent of the legislature is that the registered dealer shall furnish the true and correct value of the goods on the tax invoice. But failing to declare the true value of the goods would result in the docum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undervaluing the goods, without downloading the mandatory E-Way bill. In the garb of technicalities, no benefit can be given to a dealer who has intentionally undervalued his goods to escape from the eyes of law. 23 ..., 24..... 25. This Court finds that it is a case of grossly undervaluing the 3,84,000 pouches of Pan Masala being sent by the dealer disclosing its price as Rs. 69,600/-. The only conclusion, which can be drawn is that to avoid downloading E-Way bill and brining the transaction on record that the goods were undervalued to such an extent. 26. Moreover, the Taxing Authorities have also found that one of the consignee situated at Jharkhand was actually registered with the Taxing Authorities disclosing his nature of business as ''Works Contract and Suppliers of Services' and not in the business of trading. These actions of the dealer lead to the only conclusion that the transactions being not recorded with the Revenue so as to escape payment of due tax in the garb that E-Way bill is only required in case value of goods is more than Rs. 50,000/-. 27. Thus, from the above, it can be safely said that the action of the State Authorities in detaining th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 67;ल्ली के पंजीकृत फर्मों को माल के वास्तविक मूल्य से कम मूल्य घोषित करते हुवे इस प्रकार सुनियोजित ढंग से इनवॉइस जारी किये जा रहे है की प्रत्येक कर्ता फर्मों की रू 50 हजार से अधिक मूल्य के माल की आपूर्ति भी हो जा ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "(i) Section 50 of U.P. Value Added Tax Act does not permit seizure of a consignment being imported into the State of U.P. on the ground of undervaluation; the entire proceedings suffer from an inherent lack of jurisdiction and are void ab initio. ....... 4.......As it was alleged in the notice that the goods were undervalued, the petitioner demanded, from the respondents, the basis for alleging the same. The petitioner denied that the goods were undervalued and contended that the charge of undervaluation was unsustainable. The power to seize goods on the ground of undervaluation was not available under the U.P. VAT Act. It was, therefore, contended that the proceedings are void ab initio. ..... 7. ....A perusal, therefore, of the above provisions would show that, any person who imports into the State from any place outside the State any goods, shall obtain the prescribed form of declaration in such manner as may be prescribed from the Assessing Authority having jurisdiction over the area, where his principal place of business is situated or, in case there is no such place, where he ordinarily resides. Sub-section (4) of Section 50 confers power in the officer, making the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of goods would result in the document being held not to be a proper document in the context of the valuation. 9......The legislature itself has conferred power of detention in respect of goods being imported under Section 50, if not covered by proper and genuine documents and by virtue of Section 50 (5) has incorporated the machinery provisions of Section 48 into Section 50. We, therefore, have no hesitation to hold that under Section 50 (4) of the U.P. VAT Act, the officer making search has power to detain goods not covered by a proper and/or genuine documents. We, therefore, have no hesitation in holding that the power to seize goods imported into the State without proper or genuine document is located in Section 50 (4)." (Emphasis supplied by this Court) 43. Section 129 (3) read with Section 31 of GST Act as well as Rule 46 of GST Rules is analogous of Section 48 and 50 of the VAT Act. 44. If the petitioner wants to take any advantage of tax invoice accompanying the goods then primary duty of movement of goods from West Bengal / Assam to Delhi have not been discharged. 45. In view of the aforesaid two judgements one by Division Bench in the case of Shiv Shakti Tra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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