Introduction For CGST– the Calcutta High Court In a significant legal development directed the pivotal judgment for the case of Mohammad Shamasher vs. State of West Bengal & Ors., challenging penalties imposed under Section 129 of the State Goods and Services Tax (GST) Act. This case is about the detention of an escalator machine (JCB) and subsequent penalties for alleged breach.
Detailed Analysis About GST Under Section 129: The petitioner, the sole proprietor of M/s Afika Infrastructure, faced penalties under Section 129 (3) of the State GST Act for the vehicle’s interception without documentation.
The court insights into the intricacies, highlighting that the respondent authority does not have the power to find out the tax amounts under Section 129 proceedings. The court emphasized alternative penalty provisions under Section 122 and highlighted the importance of compliance with Sections 73 and 74 for tax determination.
The applicant contended the machine’s validity of the e-way bill, claiming that no tax was to be levied on its return post-finish of the work. The legal references along with the judgments from Uttarakhand, Allahabad, and the Calcutta High Court, were quoted to support the view that procedural inappropriateness shouldn’t result in disproportionate penalties.
Closure: The High Court considering the e-way bill validity however stressing the absence of the delivery challan set aside the penalties. The judgment shows that the petitioner’s unintentional tax evading makes the 200% penalty disproportionate. The court rendered the adjudicating authority to revalidate the case that is aligned with the discussions, stressing a clear and reasoned decision within 8 weeks.
The same case clarifies the nuances of section 129 penalties as well as a precedent underlining proportionality in penalty levy. From the identical cases, the businesses that are facing issues might draw insights via the same landmark judgment. You should remain updated with the additional lawful analyses and implications in the surging world of GST norms.
| Case Title | Mohammad Shamasher Vs State of West Bengal & Ors |
| Case No. | WPA 85 of 2024 |
| Date | 01.02.2024 |
| For the Writ Petitioner | Mr. Dhiraj Lakhotia, Adv., Ms. Radhika Agarwal, Adv., Ms. Khushi Kundu, Adv. |
| For the State | Mr. Momenur Rahman, Adv., Ms. Rima Sarkar, Adv |
| Calcutta High Court | Read Order |