[2023] 150 taxmann.
com 158 (Allahabad)[23-03-2023]
GST : Entire tax determined and penalty levied only on basis of survey by taking
recourse under section 130 of CGST Act instead of recourse to section 74 ibid was
not sustainable
GST : That goods were lying in excess of goods in record could not be ground to
invoke section 130(1)(ii) of Central Goods and Services Tax Act, 2017 to impose
penalty
GST : Service of show-cause notice on accountant of assessee-firm was not valid
service
GST : Valuation done at appellate stage without resorting to mandate and manner
prescribed in section 15 of CSGT Act read with Rules was not sustainable
■■■
[2023] 150 taxmann.com 158 (Allahabad)
HIGH COURT OF ALLAHABAD
Maa Mahamaya Alloys (P.) Ltd.
v.
State of U.P.
PANKAJ BHATIA, J.
WRIT TAX NO. 31 OF 2021
MARCH 23, 2023
Confiscation - Determination of tax and imposition of penalty - Failure to issue show-cause
notice or initiate proceedings under section 74 ibid - Entire tax determined and penalty levied
only on basis of survey by taking recourse under section 130 ibid instead of recourse to
section 74 ibid was not sustainable [Section 74 of the Central Goods and Services Tax Act,
2017/Uttar Pradesh Goods and Services Tax Act, 2017 [Paras 11, 12, 13, 20 and 21] [In favour
of assessee]
Penalty - Improper accounting of goods - Liability to pay tax arises at time of point of supply
and not at any point earlier than that - That goods were lying in excess of goods in record
could not be ground to invoke section 130(1)(ii) of Central Goods and Services Tax Act, 2017 -
There were no allegation of intent to evade tax either in show-cause notice or any other
orders - Section 130(1)(ii) ibid was also not attracted - Penalty could not be levied [Section 131
of the Central Goods and Services Tax Act, 2017/Uttar Pradesh Goods and Services Tax Act,
2017 [Paras 14 and 15] [In favour of assessee]
Show-cause notice - Service of notice - Completed only when it is tendered to taxable person
or on his Manager or authorized representative - Service on accountant of assessee-firm - Not
valid service [Section 169 of the Central Goods and Services Tax Act, 2017/Uttar Pradesh
Goods and Services Tax Act, 2017 [Paras 17 and 18] [In favour of assessee]
Valuation (GST) - No prescriptions for valuation of goods on basis of eye estimation -
Valuation done at appellate stage without resorting to mandate and manner prescribed in
section 15 of Central Goods and Services Tax Act, 2017 read with rule 27 of Central Goods
and Services Tax Rules, 2017 - Not sustainable [Section 15 of the Central Goods and Services
Tax Act, 2017/Uttar Pradesh Goods and Services Tax Act, 2017 [Para 19] [In favour of
assessee]
Aloke Kumar for the Petitioner. C.S.C. for the Respondent.
ORDER
