Max Penalty of Rs 10000 can be levied on Goods Transported for repair without proper documents

Extract of Order is as follows:

21. As there is no doubt that the taxpayer has violated the provisions of the CGST/HPGST Act, 2017, so is liable to pay penalty. The tax payer has transported goods without the cover of proper documents (e-way bill is one of them) . In this regard, attention is invited toward section 122 of the CGST/HPGST Act that can come into play in the instant case which
provides:

122. (1) Where a taxable person who-

(i) supplies any goods or services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply;

(xiv) transport s any taxable goods without the cover of documents as may be specified in this behalf;

he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to th e tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or the refund claimed fra udulently, whichever is higher.

22. In the view of the above facts, the instant appeal is accented and the order passed by Assistant Commissioner State Taxes & Excise-cum – Proper Officer, North Enforcement Zone Palampur dated 27.11.2018 is set aside. The tax and penalty deposited by the appellant under section 129(1) may be refunded and a penalty of Rs Ten Thousand only (Rs 10,000/-) is imposed on the taxpayer under section 122(1) of the Act. The judgment in this case was reserved on 04.01.2020 which is released today.

Inform the parties accordingly.

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Tags : Judgement, GST, Advance Ruling