Page 249 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] SUBJECT INDEX 743
Penalty (Contd.)
— under GST law - Detention of goods in absence of E-Way Bill - Violation
of Natural justice - Mens rea - Sections 129(3) and 129(4) of Central Goods
and Services Tax Act, 2017 clearly providing that notice for penalty has to
be served on person on whom penalty is to be imposed and to grant
them an opportunity of hearing - In instant case notice was served on
driver of vehicle who was carrying goods without E-Way Bill and not on
owner of goods on whom penalty was imposed - When on detention of
goods, department had all other documents viz. invoice, challan, etc.
showing address of owner of goods just 15 km. away, it was incumbent
on them to serve notice to such owner and hear him before taking penal
action - Circular of State Tax Department and FORM GST MOV-07 on
service of notice to driver as sufficient are not in consonance with legal
provisions - In view of above, since principles of natural justice have been
violated, impugned order set aside - Matter remanded to proper officer
for issuing notice to petitioner and decide issue on merits after hearing
him - Issue as to whether mens rea is required or not in imposition of
penalty in these circumstances is left open - Section 129 of Central Goods
and Services Tax Act, 2017/Section 129 of West Bengal Goods and
Services Tax Act, 2017 - Article 226 of Constitution of India — Bansal
Earthmovers Pvt. Ltd. v. Assistant Commissioner of SGST (Cal.) ................ 63
Pharmaceutical Reference Standards (PRS) - Prepared Laboratory Reagents
- Rate of GST - PRS, which are in nature of Prepared Laboratory Reagents
not only include diagnostic reagents but also other analytical reagents
used for purposes other than detection or diagnosis - All such regents are
classifiable under Heading 3822 of Customs Tariff Act, 1975 as applicable
to GST - Instant case, import goods are ‘Prepared laboratory reagents
without a backing’ with a label and proper instructions for use - Said
label clearly indicates that these are for laboratory use and hence
undisputedly covered under Heading 3822 ibid - As regards rate of GST,
Entry No. 80 of Schedule-II to Notification No. 1/2017-I.T. (Rate) i.e. “all
diagnostic kits and reagents” is applicable to all reagents of Heading 3822
ibid whether backing or not backing, prepared or otherwise, diagnostic
or other than diagnostic - AAR erred in limiting term “reagents” in rate
notification as being applicable only to diagnostic reagents -
Interpretation of AAR on the basis of ejusdem generis is incorrect as said
principal has no inverse application which has been done by AAR in this
case - In said entry, word “all” is preceding enumeration and not
following it - Deliberations of fitment committee for fixing rates of GST
on its introduction also confirm this view - Accordingly, impugned AAR
ruling is set aside by holding that goods under reference would carry
12% GST (6% CGST + 6% SGST) and not 18% - Section 9 of Central Goods
and Services Tax Act, 2017 — In Re : Chromachemie Laboratory Pvt. Ltd. (App.
A.A.R. - GST - Kar.) ................................... 182
Pilgrims - “Access cards” printing and supply given to pilgrims free of cost,
classification and rate of GST thereon - See under PRINTING AND
SUPPLY OF ACCESS CARD ........................... 351
Pipe Laying services provided to State Government industrial organizations
liable to Service Tax - Sections 65(39a) and 65(105)(zzzza) of Finance Act,
1994 — H.M. Pipes Pvt. Ltd. v. Commissioner (Appeals), C. Ex., Jaipur-I (Tri. - Del.) ..... 450
— Taxability when same provided to Government organizations for lift
irrigation purposes or for construction of canal etc. or to Municipal
Corporations for transportation of drinking water - Since issue claimed to
GST LAW TIMES  26th March 2020  345