GURUNANAK ARECANUT TRADERS Vs. COMMERCIAL TAX

JUDGEMENT

(1.) Heard Ms. Pooja Talwar, learned counsel for the petitioner and Sri Arvind Kumar Mishra, learned Standing Counsel for State.

(2.) Through this writ petition, a challenge has been made to order dtd. 16/6/2022 passed by Commercial Tax Officer, Sector-3 (Mobile Squad), Etah exercising power under Sec. 129(1) of the State Goods and Service Tax Act, 2017 and order dtd. 24/6/2022 under Sec. 129(3) and also quashing has been sought for the demand of tax and penalty of Rs.90,62,400.00 as well as appellate order dtd. 18/8/2022.

(3.) The brief facts of the case are that petitioner is a registered dealer under State Goods and Service Tax Act, 2017 (hereinafter called as "the Act of 2017"). He has sold 400 bags of Arecanut vide tax invoice dtd. 9/6/2022 to M/s. Jagdamba Enterprises, Nagpur which is also said to be a registered dealer in his respective State. The said Arecanut was being transported from Delhi to Nagpur, Maharastra by M/s. Ravi Goods Transport. The goods were intercepted at Mathura at 4:28 a.m. on 10/6/2022. The goods while in transit were not carrying the e-way bill. The e-way bill was generated on 10/6/2022 at 7:36 a.m. and was valid till 16/6/2022. A physical verification of consignment of goods was carried out. A detention order was passed on 16/6/2022 under Sec. 129(1) of the Act of 2017. On verification, it was found that the goods which were in transit is Chikni Bhuni Supari (processed Arecanut) and is taxable @ 18% and not @5% as declared by the petitioner. A show-cause notice was issued on 16/6/2022. When the show-cause notice remained unattended, respondent no. 2 on 24/6/2022 passed order under Sec. 129(3) of the Act of 2017 and a demand of tax and penalty of Rs.90,62,400.00 was raised against the petitioner. Aggrieved by the said order, petitioner filed Writ Tax No. 933 of 2022 before the Division Bench of this Court which was dismissed on 12/7/2022 on the ground that petitioner has remedy of filing an appeal under Sec. 107 of the Act of 2017. Thereafter, an appeal under Sec. 107 of the Act was preferred by petitioner before Additional Commissioner, Grade-II (Appeal), Aligarh which was rejected by order impugned dtd. 18/8/2022. Hence, the present writ petition.