KAMAL ENVIROTECH PVT. LTD. Vs. COMMISSIONER OF GST

JUDGEMENT

(1.) The writ petitioners have approached this Court aggrieved by the demands raised by the respondents in purported application of the provisions enshrined in Sec. 129 of the Central Goods and Services Tax Act, 2017 'Act' and which have subsequently come to be affirmed by the appellate authorities. The Order-in-Original which is impugned by Kamal Envirotech Pvt. Ltd. 'Kamal Envirotech' is dtd. 26/9/2020 and which ultimately came to be affirmed by the appellate authority in terms of its decision rendered on 15/1/2022. In the matter of M/s Zeon Life Sciences Ltd. 'Zeon Life Sciences', a demand originally came to be created against that writ petitioner by an order dtd. 12/1/2021, and which too was upheld by the appellate authority by its order of 15/2/2022. The demands themselves emanate from an allegation levelled against the writ petitioners of goods having been transported under an incomplete E-way Bill 'EWB', Part B whereof was incomplete or missing. The factum of taxes leviable on such goods having been duly paid is not disputed.

(2.) The respondents, however, would bid us to hold that Sec. 129 is a penal provision that necessarily entails a levy and demand of tax. They view that provision as envisaging a compulsory exaction or impost. In fact, they urge us to recognize that provision as being one which contemplates the levy of a statutory penalty. They would contend that notwithstanding the absence of mens rea, fraudulent motive or an intent to evade tax, where goods are sought to be transported in contravention of the provisions of the Act, a demand of tax would inevitably arise. It is the correctness of the aforesaid view which is questioned by the writ petitioners.

(3.) For the purposes of evaluating the challenge that stands raised, we deem it appropriate to notice the essential facts as they appear in W.P.(C) 12142/2022 and which flow along the following lines.