Aastha Thakur
Published on: 04 September 2022 at 16:22 IST
The Delhi High Court ruled that second chance should be given to taxpayer to prove why the subject goods did not reach their designated designation before the expiry of the e-way bill.
The bench comprising of Justice Rajeev Shakdher and Justice Tara Vitasta Ganju has decided to listen the matter with fresh start, after giving the petitioner due opportunity to produce relevant material and evidence to establish its case.
The petitioner showed how the electronic payment billing expired when the goods were intercepted. The notice on form MOV-07 was issued, along with a proposed and penalty demand. In reply the petitioner got only 7 days to file a response and to appear before the relevant officer for hearing on October 7, 2020.
The petitioner agreed to pay the demand money for the successful transaction of goods. Hence, the petitioner did not take advantage of the opportunity to demonstrate that the goods could not reach their said place before the e-way billing expires.
Furthermore, the petitioner contended that the reason behind the issuance of show-cause notice was not covered by valid documents. The proposed tax and penalty were already given in the notice.
The Court examined the arguments presented before them and ordered that concerned officer has to bear in mind the provisions of Section 126 of the CGST Act, which adverts to omission or mistake in documentation which is easily rectifiable.
The Court directed the respondent to issue a notice, in writing, to the petitioner, indicating the date and time when he intends to hear the petitioner and/or his authorized representative, in support of his case.
