Penalty Upheld for Detained Goods as Assessee Failed to Produce Records to Substantiate Case

Case Details: Balamurugan Steels v. State Tax Officer - 1 (Intelligence) - [2024] 169 taxmann.com 599 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J.
• Ms Amirtha Poonkodi Dinakaran, Govt. Adv. for the Respondent.

Facts of the Case

The petitioner was engaged in manufacture of roofing sheets. It had raised invoice in response to purchase order placed by buyer. The department passed order under Section 129(3) imposing a penalty being 200% of tax payable on ground that goods for which petitioner had generated e-way bill was not available in vehicle carrying goods. It filed writ petition against the detention order.

High Court Held

The Honorable High Court noted that the petitioner was not able to produce all records to substantiate case before the department. The Court also noted that an irregularity was committed by petitioner in not having invoice and e-way bill amended to correspond with goods that were loaded on vehicle. Therefore, the Court held that impugned order was to be upheld and writ petition was to be dismissed.