2025-VIL-1280-CAL
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SGST High Court Cases

GST - Penalty under 129(1)(b) of the CGST Act, 2017 – Correctness of imposition of the penalty under Section 129(1)(b) of the Act instead of Section 129(1)(a) when the petitioner claimed to be the owner of the goods – Whether the goods and conveyance should be released in favor of the petitioner upon payment of penalty under Section 129(1)(a) of the Act - HELD - The order passed by the authorities contained detailed factual findings questioning the genuineness of the transaction and the veracity of the documents like invoices and e-way bills relied upon by the petitioner. It would require a comprehensive factual exercise to assess the worth of the order, which is not possible in the writ jurisdiction based on affidavit evidence. The petitioner is left free to approach the appellate authority under Section 107 of the Act to challenge the order - The CBIC Circular dated 31.12.2018, which the petitioner relied upon to contend that it should be deemed the owner of the goods, would be binding on the Department. However, the Circular should be applied only in cases where the documents, such as invoices and e-way bills, are in order. In the present case, the authorities have raised serious questions regarding the veracity of the documents relied upon by the petitioner. Therefore, the circular cannot be relied upon to grant the benefit of Section 129(1)(a) to the petitioner - If the petitioner pays an amount equivalent to the penalty that would have been payable under Section 129(1)(a) of the Act and secures the balance amount by furnishing a bank guarantee, the authorities shall release the goods and conveyance in favor of the petitioner. The authorities are directed to provide the petitioner with the necessary GST ID and password to enable it to file an appeal under Section 107 of the Act, if so required - If an appeal is filed by the petitioner, the appellate authority shall dispose of the same within a period of four weeks from the date of filing of the appeal – The petition is disposed of
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