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Summary of Case: M/S. INDO SWISS GEMS CO. vs. UNION OF INDIA
AND OTHERS
Application No. W.P. No.: WPA 13141 of 2024
Date of Order: July 4, 2024
Court: Calcutta High Court
Facts of the Case:
·
The
petitioner, M/S. Indo Swiss Gems Co., was engaged in job work and was penalized
for not generating an e-way bill for the consignment. The petitioner argued
that the consignment value did not exceed Rs. 50,000 and hence an e-way bill
was not required.
Submission by the Petitioner:
·
The
petitioner argued that the proper officer had incorrectly determined the value
of the supply of goods based on the value of the goods rather than the
transaction value for the job work.
·
The
petitioner referred to a trade circular which stated that goods returned to the
principal after job work only needed to be accompanied by a challan and not an
e-way bill.
·
The
petitioner requested that the penalty paid be refunded or adjusted against
future GST levies, as there was no irregularity in not generating the e-way
bill.
Submission by the Respondent:
·
The
respondents argued that the petitioner’s submissions were not supported by
proper disclosure and that the determination of the value of the goods was in
accordance with Section 15 of the CGST/WBGST Act, 2017. They contended that the
petitioner failed to disclose the contract, which affected the proper
determination of the transaction value.
Judgment:
·
The court
found that neither the proper officer nor the appellate authority had
considered whether the transaction value could be determined in accordance with
Section 15(1) of the CGST/WBGST Act, 2017.
·
The court
set aside the order of the appellate authority dated December 27, 2023, and
remanded the matter back for re-determination of the transaction value.
·
The
petitioner was directed to disclose all relevant documents within three weeks
for proper determination by the appellate authority.
Conclusion:
·
The writ
petition was disposed of with directions for the petitioner to make necessary
disclosures and for the appellate authority to re-determine the transaction
value and pass a fresh order.
Disclaimer: All the
Information is based on the notification, circular and order issued by the
Govt. authority and judgement delivered by the court or the
authority information is strictly for educational purposes and on the
basis of our best understanding of laws & not binding on anyone.
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