GST
TRT-2025-
Allahabad High Court
Date:-14-02-23
In:-
Issue Favourable to Tax Payer ?:-
Order date – 14 February 2023
Parties: M/S Radha Fragrance Ltd Vs Union Of India
Facts –
- The Petitioner, M/s Radha Fragrance Ltd, who is a manufacturer of Pan Masala and Tobacco, was sending goods as claimed by him to two dealers situated in the State of Jharkhand. The Pan Masala and Tobacco in 120 Cartoons. During the verification of goods, it was found that on the total calculation done for each Cartoons, the value came to Rs.10,240/- after giving 25% discount. The disclosure by the dealer per Cartoon was only Rs.1,160/- and thus after giving trade discount and addition of taxes, the value was brought down to the threshold limit of Rs.50,000/-.
- The Taxing Authorities, on fair valuation, found that the goods, which were in transit both Pan Masala and Tobacco accounted for Rs.7,12,766/- while the proper disclosure was not made by the dealer. It was on this undervaluation of goods that the authorities proceeded and imposed IGST and penalty.
- Aggrieved, this petition is filed.
Issue –
- Whether the Petitioner is required to generate e-way bill ?
Order –
- The single bench of Hon’ble High Court observed that the Petitioner had started his business in the year 2018, prior to the interception of the goods had carried 11 transactions and none of the transactions were ever reported on the Web Portal and no E-Way bill was downloaded by him. Meaning thereby that all the transactions made by him was below Rs.50,000/-. If such a conduct of a dealer is permitted, it will harm the business world and lead to a parallel economy and the very purpose of enactment of Goods and Service Tax Act would frustrate. The idea of ‘One Nation One Tax’ was to subsume all other taxes into one and bring transparency in the business world.
- From the transaction carried out by the petitioner it is clear that huge amount of Pan Masala and Tobacco were being transported undervaluing the goods, without downloading the mandatory E-Way bill. In the garb of technicalities, no benefit can be given to a dealer who has intentionally undervalued his goods to escape from the eyes of law.
- It is clear case of undervaluation of goods by the dealer who was transporting huge quantity of Pan Masala and Tobacco showing negligible value of goods.
- In the result, writ petition fails and is hereby dismissed.
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