In the present case, the Superintendent of Taxes has not passed any order of assessment before raising recovery of the amounts. Demand notice is set aside.
Section 129 of the CGST Act — Goods in Transit –-- The petitioner a transporter, whose vehicles were detained on the ground that the drivers did not possess valid e-way bills for these heavy vehicles. A notice was issued to him stating that there was an attempt to evade tax. The respondent further communicated him that the vehicles were new motor vehicles with temporary registration numbers which were affixed and the e-way bills in connection of these vehicles did not display the temporary registration numbers. The counsel for the petitioner submitted that the drivers were carrying all necessary documents along with the vehicles. The GST was fully paid earlier and there was no evasion of duty in any manner. Only minor technical defect, if at all, was that the e-way bills did not contain the temporary registration of the vehicles. This defect was also later on removed by generation of fresh e-way bills. The court observed that in the SCN dated 15th May 2021, the respondent had not elaborated the ground that the e-way bills did not carry the reference to the temporary registration numbers, a ground which he raised in subsequent communication dated 20th May 2021. The respondent has not passed any order of assessment before raising recovery of the amounts. The reply filed on 19th May 2021, did not cover the grounds and allegations made in the communication dated 20th May 2021. The court further observed that all taxes were already paid and the defect pointed out was technical and in any case, later on cured. The vehicles have been detained since 13th May 2021, are unattended and lying in uncovered condition. The condition of these vehicles would certainly deteriorate in this ongoing monsoon.
Held that:- The Hon’ble High Court set aside Demand notice dated 29th May 2021. For the purpose of carrying out assessment, the SCN dated 15th May 2021 read with the communication dated 20th May 2021, shall be treated as a show cause notice. The petitioner shall have time up to 20th August, 2021 to file further reply after that respondent will decise the case. The vehicles in question shall be released upon petitioner furnishing unconditional Bank guarantee to the tune of 25% of the total amount and furnishing a bond for remaining amount of 75% indicated in the demand notices dated 29th May 2021.
In the present case, the Superintendent of Taxes has not passed any order of assessment before raising recovery of the amounts. Demand notice is set aside.
Section 129 of the CGST Act — Goods in Transit –-- The petitioner a transporter, whose vehicles were detained on the ground that the drivers did not possess valid e-way bills for these heavy vehicles. A notice was issued to him stating that there was an attempt to evade tax. The respondent further communicated him that the vehicles were new motor vehicles with temporary registration numbers which were affixed and the e-way bills in connection of these vehicles did not display the temporary registration numbers. The counsel for the petitioner submitted that the drivers were carrying all necessary documents along with the vehicles. The GST was fully paid earlier and there was no evasion of duty in any manner. Only minor technical defect, if at all, was that the e-way bills did not contain the temporary registration of the vehicles. This defect was also later on removed by generation of fresh e-way bills. The court observed that in the SCN dated 15th May 2021, the respondent had not elaborated the ground that the e-way bills did not carry the reference to the temporary registration numbers, a ground which he raised in subsequent communication dated 20th May 2021. The respondent has not passed any order of assessment before raising recovery of the amounts. The reply filed on 19th May 2021, did not cover the grounds and allegations made in the communication dated 20th May 2021. The court further observed that all taxes were already paid and the defect pointed out was technical and in any case, later on cured. The vehicles have been detained since 13th May 2021, are unattended and lying in uncovered condition. The condition of these vehicles would certainly deteriorate in this ongoing monsoon.
Held that:- The Hon’ble High Court set aside Demand notice dated 29th May 2021. For the purpose of carrying out assessment, the SCN dated 15th May 2021 read with the communication dated 20th May 2021, shall be treated as a show cause notice. The petitioner shall have time up to 20th August, 2021 to file further reply after that respondent will decise the case. The vehicles in question shall be released upon petitioner furnishing unconditional Bank guarantee to the tune of 25% of the total amount and furnishing a bond for remaining amount of 75% indicated in the demand notices dated 29th May 2021.