2022-TIOL-NEWS-020 Part 2 Dated: Monday, January 24, 2022

2022-TIOL-07-SC-GST

Asstt. Commissioner (ST) Vs Satyam Shivam Papers Pvt Ltd

GST - Intra State supply of paper - Road block due to rally by political party - Shop of buyer was closed by the time that the traffic block was eased, therefore, trolley driver took the goods to this residence so as to deliver on next working day - As fate would have had it, the trolley driver was stopped by the State Tax officer and the trolley was detained by the Deputy State Tax Officer and detention notice was service alleging that the validity of the e-way bill had expired - The second respondent unloaded the paper boxes at a private premises in the house of second respondent's relative without tendering any acknowledgement, however, the auto trolley was released - After making representation for release of detained goods, as no response was received, assessee made payment of a total of Rs.69,000/- being the tax and penalty on the goods - Form GST MOV-09 came to be issued without taking cognizance of the payment made, hence assessee moved High Court which observed that on account of non-extension of validity of e-way bill, no presumption can be drawn that there was an intention to evade tax; that it is unable to understand the reason for keeping the goods in the house of a relative of second respondent (for 16 days) and not in any other place designated by law for safe keeping; that there has been a blatant abuse of power by second respondent in collecting tax and penalty; that the said amount is to be refunded to the assessee within four weeks with interest @6% and also pay costs of Rs.10,000/- - Revenue is aggrieved with this order and has filed a Special leave to appeal.

Held : Bench is clearly of the view that the error, if any, on the part of the High Court, had been of imposing only nominal costs of Rs. 10,000/- (Rupees Ten Thousand) on the respondent No. 2 of the writ petition, who is presently, the petitioner No. 2 - The analysis and reasoning of the High Court commends to us - Considering the overall conduct of the petitioner No. 2 and the corresponding harassment faced by the writ petitioner Bench finds it rather necessary to enhance the amount of costs - On the facts of this case, it has precisely been found that there was no intent on the part of the writ petitioner to evade tax and rather, the goods in question could not be taken to the destination within time for the reasons beyond the control of the writ petitioner - When the undeniable facts, including the traffic blockage due to agitation, are taken into consideration, the State alone remains responsible for not providing smooth passage of traffic - Submissions sought to be made do not give rise to even a question of fact what to say of a question of law - Petition is rather mis conceived, therefore, Bench is constrained to enhance the amount of costs imposed in this matter by the High Court - In the given circumstances, a further sum of Rs. 59,000/- (Rupees Fifty-nine Thousand) is imposed on the petitioners toward costs, which shall be payable to the writ petitioner within four weeks - State would be entitled to recover the amount of costs, after making payment to the writ petitioner, directly from the person/s responsible for this entirely unnecessary litigation - Petition is dismissed: Supreme Court

- Petition dismissed: SUPREME COURT OF INDIA