Greenlights Power Solutions vs. State Tax Officer
Held
The High Court held that the date discrepancy was insignificant and did not warrant the full tax and penalty under Section 129, especially considering CBDT Circular No.64/38/2018. The Court quashed the demand order (Ext.P6) and directed the respondent to reconsider the matter in light of the Circular and the judgment's observations.
Facts
The petitioner's goods were detained under Section 129 of the CGST Act due to a minor discrepancy in the e-way bill date, caused by a computer formatting error (mm-dd-yyyy instead of dd-mm-yyyy). A final order was issued imposing tax and an equivalent penalty, which the petitioner challenged after releasing goods by furnishing a bank guarantee.
Key Issues
Whether a minor discrepancy in the e-way bill date, caused by a computer formatting error, justifies detention and imposition of full tax and penalty under Section 129 of the CGST Act, and the applicability of CBDT Circular No.64/38/2018.
Sections Cited
Section 129, Section 129(3), Section 168, Section 125, Circular No.64/38/2018 dated 14-09-2018
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 6TH DAY OF APRIL 2022 / 16TH CHAITHRA, 1944 WP(C) NO. 7716 OF 2021 PETITIONER: GREENLIGHTS POWER SOLUTIONS 2ND FLOOR, VALAMKOTTIL TOWER, KAKKANADU, COCHIN - 682021, REPRESENTED BY ITS PROPRIETOR, MR. BINU. BY ADV GIGIMON ISSAC RESPONDENTS: 1 STATE TAX OFFICER SQUAD NO.III, STATE GOODS AND SERVICES TAX DEPARTMENT, ERNAKULAM, KERALA - 682015, 2 COMMISSIONER OF COMMERCIAL TAXES TAX TOWER, KILLIPPALAM, KARAMANA P.O, THIRUVANANTHAPURAM - 695002. BY SMT.M.M.JASMIN, GOVT. PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.04.2022, THE COURT ON 06.04.2022 DELIVERED THE FOLLOWING:
W.P.(C) No.7716/21 BECHU KURIAN THOMAS, J. -------------------------------- W.P.(C) No.7716 of 2021 --------------------------------- Dated this the 6th day of April, 2022 JUDGMENT Petitioner seeks a direction to release the bank guarantee furnished by it after finding that the detention of goods under section 129 of the Central Goods and Service Tax Act, 2017 (
The judgment continues below.
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