Page 177 - GSTL_2nd April 2020_Vol 35_Part 1

2020 ] UMIYA ENTERPRISE v. ASSTT. STATE TAX OFFICER, SGST DEPTT., PALAKKAD 79
Boards Pvt. Ltd., Chennai despatched plywood under cover of valid invoice and
E-way Bill on 10-1-2020 to the petitioner. The 1st respondent intercepted the con-
veyance containing the consignment invoking the provisions in Sec. 129 alleging
the defects that no IGST is seen collected in the tax invoice which amounts to
contravention of Sec. 5(1) of the IGST Act read with Rule 46(e) and (m) of the
CGST Rules. The petitioner was called upon to show cause as to why an amount
of tax of Rs. 1,20,985/- and the same amount as penalty under the IGST Act
should not be imposed. It is pointed out that the alleged contravention of the
provisions is not at all a valid reason for suspecting the genuineness of the con-
signment. The supplier of goods is a registered dealer in Tamil Nadu holding
valid GST registration. In Ext.P-1 invoice the element of tax happened to be
wrongly shown as CGST and SGST @ 9% as against IGST of 18%. This is an in-
advertent mistake committed by the new Accountant of the supplier. But in Ext-
P2 E-way Bill the tax has been correctly declared as IGST Rs. 1,20,985/-. E-way
Bill issued under Rule 138 of the GST Rules generated on line is the fundamental
document proving the correctness of the goods transported. The clerical error in
the invoice will not prejudice the Revenue in any manner and the returns will
automatically set right such trifling errors in documentation. However, the E-
way bill having been correctly generated, any adverse presumption of tax eva-
sion is wholly out of context and untenable. It is also submitted that as per the
provisions in Sec. 126 of the GST Act dealing with the general disciplines related
to penal proceedings are not to be initiated for minor breaches of tax regulations
or procedural requirements, omission or mistake in documentation. Despite fil-
ing convincing explanation, the 1st respondent is not inclined to release the
goods without payment of tax and penalty. In the light of these averments and
contentions, the petitioner has filed the instant writ petition (Civil) with the
aforementioned prayers.
4. Sri. K.N. Sreekumaran, Learned Counsel appearing for the petitioner
would strongly urge that though in Ext.P1 invoice, the element of tax happened
to be wrongly shown as CGST and SGST @ 9% as against IGST @ 18% involved
in this transaction, the same was only an inadvertent mistake committed by the
new Accountant of the supplier in Tamil Nadu. But, that the heart of the matter
is that in Ext.P2 E-way Bill the tax has been correctly and properly declared as
IGST Rs. 1,20,985/-, which is at the rate of 18% and that the E-way bill issued
under Rule 138 of the GST Rules generated on line is the fundamental and basic
document proving the correctness of the goods transported and the bona fides in
the transaction. Further that merely there are clerical errors in the invoice can be
the basis for the respondents to even remotely suspect any element of tax evasion
in the present transaction and that the clerical error in the invoice will not in any
manner prejudice the Revenue and the returns will automatically set right such
trifling errors in documentation. It is again thus reiterated the Learned Counsel
appearing for the petitioner that the E-way bill having been correctly generated,
any adverse presumption of tax evasion is wholly misplaced and untenable and
that the core of the legal principles flowing from the provisions contained in Sec-
tion 126 of the GST Act, which deals with general disciplines related to penal
proceedings, is that such proceedings are not to be initiated for minor breaches of
tax regulations or procedural requirements, omission or mistake in documenta-
tion and that the said legal principle could be befittingly applied to the facts of
this case for the simple reason that the fundamental and basic document, which
is the E-way bill issued under 138 of the GST Rules, has correctly shown that the
IGST tax at the rate of 18% and that the due tax amount of Rs. 1,20,985/- is also
GST LAW TIMES  2nd April 2020  241