HC Directs Re-adjudication of E-way Monthly bill Generation by Task Employee Based mostly on Transaction Worth

Gopal Nondy Vs Assistant Commissioner of Point out Tax (Calcutta Higher Courtroom)
In the case of Gopal Nondy Vs Assistant Commissioner of Condition Tax (Calcutta Superior Courtroom), the petitioner, proprietor of Arpan Company, challenged an get below Segment 107 of the WBGST / CGST Act, 2017 concerning the detention and subsequent penalty on a consignment gained from M/s Apex Auto Private Confined. The consignment, transported from Jamshedpur to West Bengal, was intercepted and detained because of to alleged problems in documentation, specifically the absence of an e-way bill.
The petitioner argued that as a job employee under a agreement with Apex Car, the transaction benefit did not require an e-way invoice as for each Portion 15 of the said Act, because it fell beneath Rs. 50,000. The petitioner also cited Trade Round No. 30/2018, which exempts work personnel from certain documentation specifications publish occupation get the job done completion.
The Court noted discrepancies in how the value of goods was determined by the tax authorities, emphasizing that the transaction price ought to have been regarded as as per Segment 15(1) of the Act. It directed the appellate authority to re-consider the situation, instructing the petitioner to disclose all pertinent position work files in just three weeks for appropriate assessment of transaction price. If the paperwork ended up not disclosed in time, the enchantment would continue based on accessible information.
Ultimately, the Courtroom set aside the appellate authority’s determination, remanding the scenario for a refreshing resolve centered on disclosed paperwork. It clarified that failure to provide vital documents in the stipulated period would end result in the charm remaining decided dependent on current documents.
Comprehensive Textual content OF THE JUDGMENT/Get OF CALCUTTA Significant Court docket
1. Affidavit of assistance filed in Court docket nowadays is retained with the data.
2. The present writ petition has been submitted, inter alia, hard the get dated 27th December 2023 passed by the appellate authority beneath Area 107 of the WBGST / CGST Act, 2017 (hereinafter referred to as the “said Act”).
3. The petitioner is the proprietor of Arpan Organization and is registered beneath the provisions of the explained Act. The petitioner promises to have gained selected orders from M/s Apex Auto Private Minimal possessing its position of enterprise exterior the Condition of West Bengal at Jamshedpur (hereinafter referred to as the “principal”) for executing specific occupation get the job done in regard of selected “Railway Component” (hereinafter referred to as the “consignment”). Pursuant to and in furtherance of the aforesaid contract executed amongst the petitioner on one particular hand the claimed principal, the petitioner obtained 22 parts of consignment aggregating an bill value of Rs.5,92,623.20/- from the explained principal towards two different order orders dated 4th November 2022 and 21st November 2022 respectively. The aforesaid consignment was transported from Jamshedpur to the petitioner’s place of small business in the State of West Bengal by a transporter specifically, CARCA Rapid Remedies Private Constrained under two separate e-way charges equally dated 23rd November 2022, for bill amount of Rs.96,509.30/- and Rs.4,96,113.90/-respectively aggregating to Rs.5,92,623.20/-.
4. It is the petitioner’s situation that when the petitioner was in the course of action of returning the consignment upon executing the position do the job and experienced loaded the same in a auto, the identical was intercepted and detained on 24th/26th November, 2022 inside the Condition of West Bengal at Nimpara, Paschim Medinipur by the respondent no. 1. As would seem from the purchase of detention dated 26th November 2022, the consignment was detained only on the ground that the documents tendered had been discovered to be faulty and that no e-way monthly bill was created for movement of the goods in issue. On a actual physical verification executed on the reported day, no other discrepancy aside from what was indicated in the detention get was recognized by the respondents. The very same was followed by an order less than Segment 129(3) of the said Act dated 27th November 2022, exactly where less than the suitable officer had decided the penalty payable by the petitioner.
5. Data would reveal that the petitioner had obtained launch of the aforesaid consignment by producing payment of penalty in terms of Area 129(1)(a) of the reported Act and consequent thereon an buy dated 29th November 2022 was handed, releasing the consignment and the conveyance which experienced been so detained. The petitioner has subsequently most popular an charm tough the stated get dated 29th November 2022, determining penalty payable by the petitioner in phrases of Segment 129 of the stated Act. The reported attraction was rejected on 27th December 2023 by confirming the buy dated 29th November 2022 handed by the right officer.
6. Das, acquired advocate appearing for the petitioner by drawing awareness of this Courtroom to the buy purchase showing up at webpage 24 of the writ petition submits that it is not in dispute that the petitioner had been entrusted to have out sure work will work on contractual foundation. By placing reliance on Section 15 of the explained Act, he submits that price of the taxable supply is essential to be identified in phrases of the mentioned Section and since, the petitioner was carrying out occupation perform, the petitioner had indicated the price of the provide of merchandise in the invoices on the basis of the transaction as is required to be carried out in conditions of Area 15 of the claimed Act. He submits that given that, the transaction price did not exceed Rs.50,000/-, the petitioner was, for that reason, not demanded to deliver e-way invoice. This facet was fully in excess of-looked both by the correct officer as also by the appellate authority when passing the orders impugned.
7. By positioning reliance on a trade round no. 30/2018 dated 17th September 2018 it is submitted that soon after executing the task operate, when the position staff returns the items to the principal, this sort of products are required to be accompanied by a challan and no other files. By further more drawing interest of this Courtroom to clause 9.4 of the said round it is submitted that in respect of provide of occupation work companies, despite the fact that work personnel are liable to pay out GST, these payment is essential to be built on the basis of the bill at the time of offer of these providers and the time of offer of companies is necessary to be decided in phrases of Portion 13 read through with Part 31 of the said Act. He submits that the appropriate officer at the to start with instance experienced fully commited an irregularity when identifying the benefit of the offer of goods in regard of the occupation operate on the basis of the worth of the items and not on the basis of the transaction, for execution of the career perform.
8. By drawing consideration of this Courtroom to Rule 138 of CGST/WBGST Principles 2017 (hereinafter referred to as the “said Rules”) it is submitted that an e-way monthly bill is needed to be produced provided the consignment worth exceeds Rs.50,000/-. Admittedly, in accordance to the petitioner in this case, due to the fact the consignment value did not exceed Rs.50,000/-, no e-way monthly bill was created. There is no irregularity on the part of the petitioner in not producing the e-way monthly bill and the consignment not currently being accompanied by an e-way invoice. This factor was not adequately deemed equally by the right officer as also by the appellate authority. In the info as observed above, it is submitted that this Court docket could be delighted to established aside the orders impugned and immediate the respondents, either to refund or to alter the penalty currently paid out by the petitioner versus long term levy of GST.
9. Mr. Siddiqui, uncovered advocate showing up for the respondents on the other hand submits that the arguments canvassed by the petitioner ahead of this Courtroom are not supported by proper disclosure. The career get the job done agreement has not been disclosed and as these kinds of, in absence of such career do the job agreement, the appropriate officer had identified the price of the consignment on the basis of the benefit of items and not on the basis of the contract. He, however, acknowledges the truth that the aforesaid challenge involves correct thing to consider on the foundation of ideal disclosure to be designed by the petitioner.
10. Heard the figured out advocates showing up for the respective get-togethers and regarded the materials on record.
11. In this situation, it may perhaps be recognized that the petitioner is a job worker. From a perusal of Explanation-2 of Procedures 138 of the mentioned Procedures, it would seem that for the reason of the stated Rule, the consignment benefit of the claimed merchandise shall be the value identified in accordance with the provisions of Part 15 of the stated Act, so declared in an bill, a monthly bill of supply or shipping and delivery challan as the situation may be. To a lot more fully recognize the identical, Rule 138 (1) of the reported Rules and Segment 15 of the mentioned Act is extracted hereinbelow:-
“138. Facts to be furnished prior to commencement of motion of goods and generation of e-way bill.-(1) Just about every registered human being who causes movement of goods of consignment worth exceeding fifty thousand rupees—
(i) in relation to a supply or
(ii) for causes other than provide or
(iii) because of to inward provide from an unregistered particular person,
shall, in advance of graduation of these kinds of movement, furnish facts relating to the mentioned goods as specified in Element A of Form GST EWB-01, electronically, on the widespread portal together with these kinds of other facts as may possibly be essential on the prevalent portal and a exceptional range will be produced on the reported portal:
Provided that the transporter, on an authorization acquired from the registered person, may well furnish details in Part A of Type GST EWB-01, electronically, on the frequent portal along with this sort of other info as might be required on the frequent portal and a distinctive variety will be generated on the explained portal:
Supplied even more that exactly where the merchandise to be transported are provided via an ecommerce operator or a courier agency, on an authorization gained from the consignor, the information and facts in Aspect A of Type GST EWB-01 may be furnished by these e-commerce operator or courier agency and a special quantity will be created on the stated portal:
Offered also that where merchandise are sent by a principal situated in one State or Union territory to a position employee situated in any other Condition or Union territory, the e-way monthly bill shall be generated possibly by the principal or the career worker, if registered, irrespective of the price of the consignment:
Supplied also that where handicraft goods are transported from one particular Condition or Union territory to another Condition or Union territory by a human being who has been exempted from the necessity of obtaining registration under clauses (i) and (ii) of section 24, the e-way invoice shall be created by the reported human being irrespective of the benefit of the consignment.
Explanation 2.- For the purposes of this rule, the consignment price of products shall bethevalue, established in accordance with the provisions of part 15, declared in an bill, a monthly bill of source or a shipping and delivery challan, as the scenario may well be, issued in regard of the reported consignment and also incorporates the central tax, State or Union territory tax, built-in tax and cess charged, if any, in the document and shall exclude the benefit of exempt supply of items wherever the bill is issued in respect of each exempt and taxable provide of products.”
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Section 15 : Benefit of taxable provide.
(1) The value of a supply of products or products and services or the two shall be the transaction value, which is the price tag really paid or payable for the stated provide of products or solutions or equally wherever the supplier and the receiver of the provide are not linked and the price tag is the sole thought for the offer.
(2) The benefit of source shall include–
(a) any taxes, responsibilities, cesses, fees and charges levied below any law for the time currently being in force other than this Act, the Condition Merchandise and Companies Tax Act, the Union Territory Goods and Products and services Tax Act and the Items and Companies Tax (Payment to States) Act, if billed independently by the supplier
(b) any amount of money that the supplier is liable to fork out in relation to this kind of supply but which has been incurred by the receiver of the source and not bundled in the rate basically paid out or payable for the items or companies or both
(c) incidental expenditures, which include commission and packing, billed by the supplier to the receiver of a supply and any quantity billed for everything completed by the supplier in respect of the provide of goods or products and services or the two at the time of, or before delivery of merchandise or offer of companies
(d) fascination or late fee or penalty for delayed payment of any thing to consider for any source and
(e) subsidies immediately connected to the rate excluding subsidies offered by the Central Federal government and the Point out Governments.
Clarification.–For the needs of this sub-segment, the amount of subsidy shall be integrated in the value of source of the provider who receives the subsidy.
(3) The benefit of the source shall not consist of any price reduction which is given–
(a) before or at the time of the offer if such discount has been duly recorded in the bill issued in regard of this sort of supply and
(b) following the source has been effected, if–
(i) these price reduction is set up in phrases of an agreement entered into at or ahead of the time of these offer and precisely connected to related invoices and
(ii) input tax credit history as is attributable to the low cost on the basis of document issued by the provider has been reversed by the receiver of the provide.
(4) Wherever the worth of the supply of items or services or both are unable to be determined below sub-portion (1), the very same shall be established in these manner as may be prescribed.
(5) Notwithstanding anything contained in sub-area (1) or sub-area (4), the price of these kinds of provides as may be notified by the Authorities on the tips of the Council shall be decided in these fashion as may be approved.
Explanation–For the needs of this Act,–
(a) folks shall be considered to be relevant individuals if–
(i) these people are officers or administrators of one another’s companies
(ii) this kind of folks are lawfully recognised companions in company
(iii) this sort of persons are employer and employee
(iv) any human being specifically or indirectly owns, controls or retains 20-5 for every cent. or much more of the exceptional voting inventory or shares of both of them
(v) 1 of them straight or indirectly controls the other
(vi) both of those of them are instantly or indirectly managed by a 3rd person
(vii) alongside one another they right or indirectly regulate a 3rd man or woman or
(viii) they are associates of the very same family members
(b) the phrase “person” also incorporates lawful individuals
(c) folks who are related in the enterprise of just one another in that a person is the sole agent or sole distributor or sole concessionaire, howsoever described, of the other, shall be considered to be relevant.
12. Even though, it has been strenuously argued by Mr. Das that the value of the merchandise ought to be the transaction price, having said that, I recognize that in phrases of Portion 15 of the explained Act wherever the benefit of provide of items or services cannot be identified less than sub-Segment (1) of the claimed Portion the very same shall be identified as may be approved. In the immediate scenario, I discover that the petitioner selected not to disclose the deal in query, nevertheless a reflection thereof is out there in the acquire buy.
13. Information, on the other hand, do not reveal that the suitable officer experienced proceeded to overlook the transaction benefit by recording that the same is not probable to be decided in accordance with Segment 15(1) of the mentioned Act. In point, the aforesaid factor has not been deemed both by the appropriate officer or by the appellate authority. As to irrespective of whether or not the petitioner is expected to make e-way invoice, would even so rely on the willpower of the transaction price in regard of the items in concern and the similar would be expected to be long gone into on the foundation of the specifics.
14. Considering that admittedly, the aforesaid part has not been regarded as either by the correct officer or by the appellate authority, I remand back again the matter to the appellate authority for re­determination of the aforesaid concern. I, further more direct the petitioner to disclose all paperwork in connection with the job perform for the proper officer to recognize the transaction price of the merchandise/consignment. These kinds of disclosure should be made by the petitioner inside a period of time of 3 months the date of interaction of this order. The appellate authority, on the foundation of the disclosure built by the petitioner, shall decide the enchantment in accordance with the observations and directions built hereinabove in 3 months from the day of conversation of this purchase on the foundation of the disclosures to be produced by the petitioner.
15. As a sequel thereto, the buy dated 27th December 2023 passed by the appellate authority is set aside.
16. It is made very clear that if the petitioner fails to disclose the documents in just the time as specified earlier mentioned, the appellate authority shall listen to out and dispose of the attractiveness on merits in accordance with regulation.
17. With the previously mentioned observations and instructions, the writ petition being WPA 13141 of 2024 is appropriately disposed of.
18. Considering that, I have not termed for any affidavits, the allegations created in the writ petition are deemed not to have been admitted by the respondents.
19. Urgent Photostat licensed duplicate of this get, if used for, be produced out there to the parties upon compliance of important formalities.