Penalty imposed under Section 129(1)(a) of CGST Act,2017 by the Adjudicating Authority is not proper. It is not possible to come every owner of goods for release of goods due to distance and other business work reasons, therefore, transporter can be treated as owner if owner of goods granted such right
Section 129 of the CGST Act — Goods in Transit — The appellant department filed appeal against the Order in Original No.01/2020 dated 27.01.2020. The department detained the impugned goods and the conveyance under sub–section (1) of Section 129 of Act 2017. A SCN in FORM GST MOV-07 was issued. The owner of conveyance paid tax and penalty. The adjudicating authority vide the impugned order No.01/2020 dated 27.01.2020 has passed an order in FORM GST-09 ordering seizure of goods along with conveyance and release the same on payment of applicable tax and penalty. The department filed appeal for determination of the correctness of the impugned order. The respondent submitted that during the time of release of goods it was not possible to come every owner of goods for release of goods due to distance and other business work reasons. So that time the respondent was treated as owner of goods. The authority observed that the penalty should have been imposed by the adjudicating authority equal to the fifty per cent of the value of the goods reduced by the tax amount paid thereon, whereas the adjudicating authority has imposed penalty equal to 100% per cent of the tax payable on the detained goods which is not proper and correct.
Held that:- The Hon’ble authority modified the Order in Original up to the extent of penalty portion and modified the penalty to Rs. 61,656/-.