Title: STERILE INDIA PVT LTD Vs UNION OF INDIA
Court: Punjab and Haryana High Court
Citation: CWP No.21246 of 2020 (O&M)
Dated: 03-Feb-2023
Section 129 of Central Goods and Service Tax Act, 2017 has been enacted to check evasion of tax. If the goods are intercepted during transit and the documents accompanying the goods are not in compliance with the provisions, authorities are within their power to detain the goods and demand payment of tax and 100% penalty.
It is held by Hon’ble Court, for the purpose of Section 129 of the CGST Act, 2017 there is no requirement that there should be intention to evade tax. The authorities are not required to establish intention to evade payment of tax.
Author’s Note:
The ruling is flawed because it fails to account for situations where individuals make unintentional errors or encounter technical difficulties that may trigger the provisions of the act. In reality, there are countless variables at play that can lead to noncompliance. Moreover, it is well-known that the Mobile Squad interacts with drivers and cleaners who may not have a comprehensive understanding of GST regulations. If the intention to evade taxes is not established, almost any vehicle could be detained, which is not feasible in an imperfect work environment like ours.