2026-VIL-94-GSTAT-BLR
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  2. 2026-VIL-94-GSTAT-BLR

SGST Tribunal

GST - Revision jurisdiction and period of limitation under Section 108(2)(b), Applicability of Supreme Court exclusion period to departmental proceedings, Extension of limitation during COVID-19 pandemic - Revisional Authority issued notice on 11.8.2021 proposing to reverse order of Appellate Authority passed on 25.3.2021 wherein penalty imposed by proper officer was reduced. Appellant pleaded that revision order dated 31.8.2024 was barred by limitation as it was passed beyond 3 years from date of appellate order. Appellant contended that directions given by Supreme Court excluding period from 15.3.2020 to 28.2.2022 for limitation purposes do not apply to statutory authorities - Whether the proceedings of Revisional Authority reversing order of Appellate Authority are barred by period of limitation fixed under Section 108(2)(b) of the Act and whether Supreme Court exclusion period for COVID-19 lockdown applies to departmental proceedings - HELD - Section 108(2)(b) places restriction that Revisional Authority cannot exercise its powers after 3 years from passing of order - Supreme Court in Cognizance for Extension of Limitation directed that period from 15.3.2020 to 28.2.2022 shall stand excluded for purposes of limitation in all judicial and quasi-judicial proceedings. This exclusion period applies to departmental proceedings as confirmed by Supreme Court in G.R. Infra Projects Limited case which specifically applied exclusion period to departmental show cause notice. Period from 26.3.2021 to 28.2.2022 approximately 11 months has to be excluded in computing limitation. Therefore Revisional Authority could pass order under Section 108 on or before 26.2.2025. Order dated 31.8.2024 falls within extended limitation period and is not barred by limitation – The appeal is dismissed - Movement of goods without statutory documents, Invocation of detention and penalty under Section 129 - Consignment was intercepted during transit and found being unloaded at premises other than mentioned in destination address - Appellant claimed e-way bill could not be generated due to technical glitches and pleaded that transactions were genuine as all parties were registered dealers - Whether Revisional Authority was justified in reversing order of Appellate Authority which had reduced penalty and in upholding invocation of Section 129 by proper officer for transportation of goods without statutory documents - HELD - Section 68(1) requires that person in charge of conveyance must carry e-way bill and prescribed documents during transit. Rule 138(1) mandates that Part A of e-way bill must be generated before commencement of movement of goods. At time of interception goods were accompanied by documents for movement from supplier to appellant but e-way bill and tax invoice for unloading at third-party premises were generated only on 1.33 PM after interception. No evidence was furnished to support plea that e-way bill could not be generated due to technical glitches - Appellant was fully aware of procedure but had deliberately not raised documents for delivery to third-party premises. Absence of statutory documents at time of interception constitutes willful act to evade payment of taxes. Generation of e-way bill after interception was only afterthought to cover-up contravention. While distinction exists between serious substantive violations and minor procedural violations in determining penalty quantum, absence of statutory documents at time of movement itself constitutes substantive violation indicating intent to evade taxes as such documents are mandate of law - Imposition of penalty under Section 129(1) is legal and valid - The order of Revisional Authority confirming penalty imposed under Section 129 is valid and upheld - Appeal is dismissed.
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