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Today’s newsletter analytically summarizes the top GST stories reported at?taxmann.com.

HC upheld penalty imposed after detention as e-way bill was not extended before expiry and no proof of breakdown submitted

Ashok and Sons (HUF) v. Joint Commissioner, State Tax, Office of the Senior Joint Commissioner, Siliguri Circle -?[2023] 147 taxmann.com 582 (Calcutta)

The petitioner was a manufacturer/supplier of milestone Bitumen Emulsion and Allied products. In the course of business, the petitioner supplied Bitumen Emulsion after generating a proper E-Way bill dated 5th March 2022 which was valid up to 9th March 2022 from Begusarai to Guwahati.

The vehicle was intercepted, and on inspection, it was found that the E-Way bill in respect of the consignment had expired. The penalty was levied, and it preferred an appeal before the Appellate Authority, which was dismissed. It filed a writ petition against the penalty order.

The department submitted that the petitioner's consignment was found lying within the territory of originating State when the e-way bill had expired.

The Honorable High Court noted that the driver gave the statement that during the course of transportation, the good carriage suffered from a breakdown. However, in support of his contention, he failed to produce the proper documents. Moreover, the petitioner had the opportunity to extend the validity of the E-Way bill when the goods vehicle had a mechanical defect. The petitioner did not take any steps for an extension of the E-Way bill.

Therefore, it was held that the department has the power to impose penalty under Section 129 as well as demand tax as goods were found to be detained in the territory of the State, and the petition was dismissed.

Advisory on opting for payment of tax under forward charge mechanism by Goods Transport Agency

GSTN Update dated February 25th, 2023

The GSTN has issued an advisory to update taxpayers that in compliance with Notification No. 03/2022-Central Tax (Rate), dated 13th July 2022, an option is provided on the portal to all the existing taxpayers providing Goods Transport Agencies Services, desirous of opting to pay tax under the forward charge mechanism to exercise their option.

The Option, once filed, cannot be withdrawn during the year, and the cut-off date for filing the Annexure V FORM is 15th March of the preceding financial year. The taxpayers can navigate Services > User Services > Opting Forward Charge Payment by GTA (Annexure V), after login, to submit their option on the portal.

That’s it from us for today! Stay Tuned for more updates from?Taxmann.com.

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