Under Valuation of Goods by Dealers to avoid GST & e-way bill: High Court confirmed penalty.

The petitioner is in the business of manufacturing and sale of Pan Masala and Tobacco. As claimed by the petitioner, he was sending goods from Harayan to Jharkhand through below four Tax Invoices.

1. Tax Invoice No.RFTB/18-19/9, 30 Cartoons Chewing Tobacco for a sum of Rs.47,465/-, which included discount, IGST and Cess.

2. Tax Invoice No.RF/18-19/10, 30 Cartoons Pan Masala for a sum of Rs.49,068/-, which included discount, IGST and Cess.

3. Tax Invoice No.RFTB/18-19/8, 30 Cartoons Chewing Tobacco for a sum of Rs.47,465/-, inclusive of discount, IGST and Cess.

4. Tax Invoice No.RF/18-19/11, 30 Cartoons Pan Masala for a sum of Rs.49,068/-, which included discount, IGST and Cess.

The goods in transit were intercepted by mobile squad. The driver of the vehicle produced only two tax invoices No.RF18-19/10 and RF18-19/11 i.e. for Pan Masala. No tax invoices were produced for Tabacco.

During inspection, it was found that the vehicle was transporting 120 Cartoons of Pan Masala and tobacco in place of 60 Cartoons as was evident from tax invoices produced by the driver. The goods were not carrying E-Way Bill in view of Rule 138 as the value of goods were claimed to be below Rs.50,000/-. The Mobile Squad, on inspection, found that in each cartoons there were 200 boxes and in each boxes, 32 pouches were kept and on every pouch, MRP Rs.4/- was printed. The total value of 60 Cartoons came to Rs.15,36,000/- and after allowing discount of 25% and excluding tax and Cess, the basic value came to Rs.6,12,766 while the value on both the invoices was declared collectively Rs.69,600/-.

A show cause notice was issued. The dealer submitted explanation that he has recently started the business and with a view to promote his business, he was charging price much below the MRP printed on the pack.

GST Authority passed an order confirming tax to the extent of Rs.7,27,235/- and the same amount of penalty totalling Rs.14,54,470/-.

Aggrieved by the order, an appeal was preferred by petitioner, which was eventually dismissed. Hence the present writ petition.

Revenue:

Revenue submitted that in order to avoid E-Way bill and production and the sale being uploaded on the web-portal, the goods were deliberately undervalued by the petitioner. Revenue also discarded the explanation of dealer that he recently started the business and with a view to promote his business, he was charging price much below the MRP printed on the pack.

Held by High Court:

:

Under Valuation of Goods

:

E-way Bill

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