Research › Search › Judgment

Gujarat High Court · body

2024 DIGILAW 914 (GUJ)

Hari Enterprises v. Union of India

2024-04-18

BHARGAV D.KARIA, NIRAL R.MEHTA

body2024
ORDER : 1. By this petition under Articles 226 and 227 of the Constitution of India, the petitioner has prayed for the following reliefs: “(A) To issue a Writ of Mandamus and/or Writ of Certiorari and/or any other appropriate writ, order or direction to respondent no 4 to delete the temporary registration bearing registration number 242400000174TMP quash and set-aside the order for granting temporary registration no to the petitioner. (B) To issue appropriate writ quashing and setting aside the order passed by the Respondent No. 4 and uploaded on the temporary id bearing Temporary Registration No. 242400000174TMP. (C) To issue appropriate writ directing the respondent authority to delete the temporary registration bearing registration number 242400000174TMP. (D) To issue appropriate writ directing the respondent authority to upload all the communication in the GST portal of the petitioner being registration Number 08GVWPR5673D1ZO. (E) During the pendency of the petition, your lordship may direct the respondent authority to delete the temporary registration generated to upload the documents and upload the documents in the portal of the petitioner. (F) During the pendency of the petition, your lordship may direct the respondent authority for releasing the good on furnishing bond and any other order condition deem fit to Your Lordship. (G) To dispense with the copy of the order for granting temporary registration number to the petitioner as same is not provided to the petitioner by respondent no 4.” 2. The brief facts of the case are that the petitioner has been granted registration under the provisions of the Goods and Service Tax Act, 2017 being GSTIN: 08GVWPR5673D1ZO by the appropriate authority in the State of Rajasthan. According to the petitioner, the said registration was granted after due verification of the place of business as well as the documents which were supplied. 2.1 It is the case of the petitioner that a purchase order was received from one Ashoka Enterprise for supply of agriculture products to the consignee situated in Andhra Pradesh. 2.2 A vehicle bearing registration No. RJ-39-GB-5167 was moving towards Amirgadh from Palanpur. The officer on duty intercepted the vehicle and checked whether any e-way bill was generated for this vehicle or not from the GST Portal. On verification, it was found by the respondent that no e-way bill was generated for the said vehicle and, therefore, the vehicle was found to be in movement without any e-way bill generation. The officer on duty intercepted the vehicle and checked whether any e-way bill was generated for this vehicle or not from the GST Portal. On verification, it was found by the respondent that no e-way bill was generated for the said vehicle and, therefore, the vehicle was found to be in movement without any e-way bill generation. The concerned officer on duty, therefore, detained the vehicle on 9.12.2023 at 2.30 a.m. opposite Sugar Granite, Palanpur - Abu Road Highway, Palanpur, Gujarat. One Tamas Khan was driving the said vehicle and after detaining the vehicle, the officer prima facie found that the goods were loaded in the vehicle, so, inquiry was made with regard to the documents for the goods loaded in the vehicle. However, the driver infromed that he has not been given any documents regarding the loaded goods which were being transported through the said vehicle. 2.3 Therefore, the officer recorded the statement of the driver in Form GST- MOV-01 with regard to absence of the documents which are required along with the transport vehicle and issued order in Form MOV-02 for further verification of the goods loaded in the said vehicle. 2.4 On verification of the documents after the vehicle was taken in the parking lot on Old Check Post at Amirgadh, the driver produced the following documents: “(a) LR No. RAJ/23-24/0004 dated 09/12/2023. (b) Invoice no. 09 dated 08/12/2023. Following details were mentioned in invoice Supplier: M/s HARI ENTERPRISE (GSTIN- 08GVWPR5673D1ZO) Receiver: M/s ASHOKA ENTERPRISE (GSTIN- 33MNIPK7073G1ZE) Dispatch From: Shop no 05, Ganapati Market, NH 68, Sanchore, Jalore, Rajasthan-343041 Bill From: M/s HARI ENTERPRISE, GSTIN-08GVWPR56730120 Rajasthan Billed to: Ashoka Enterprises (GSIN 33MNIPK7073G1ZE) Andhra Pradesh Ship To: Ashoka Enterprises (GSIN 33MNIPK7073G1ZE) 30-1-7, Surya Nilayam, Rangayyanaidu street, Kakinada, Andhra Pradesh- 533001 Vehicle No: RJ 39 GM 5167 Date of supply: 08/12/2023 Goods: MUSTARD SEEDS 10000 KG SESAME SEEDS 5000 KG., JEERA 12000 KG. SUOFF 3000 Kg. Total 30000 KG Invoice value: Rs. 33,23,250/- (with tax) (c) E-way bill no. 731388811075. SUOFF 3000 Kg. Total 30000 KG Invoice value: Rs. 33,23,250/- (with tax) (c) E-way bill no. 731388811075. Following details were mentioned in e-way bill Generated date: 09/12/2023 12:42 AM Generated by: 08GVWPR5673D1ZO Type: Outward - Supply Supplier: M/s HARI ENTERPRISE (GSTIN- 08GVWPR56730120) Receiver: M/s ASHOKA ENTERPRISE (GSTIN- 37MNIPK707361ZE) Dispatch From: not mentioned in invoice Bill From: not mentioned in invoice Billed to: Ashoka Enterprises (GSIN - 33MNIPK7073G1ZE) 30-1-7, Surya Nilayam, Rangayyanaidu street, Srinivas school, Suryanarayana Puram, Kakinada, Andhra Pradesh- 533001 Ship To: Ashoka Enterprises (GSIN=33MNIPK7073G1ZE) 30-1-7, Surya Nilayam, Rangayyanaidu street, Srinivas school, Suryanarayana Puram, Kakinada, Andhra Pradesh- 533001 Vehicle no: RJ 39 GM 5167 Goods: MUSTARD SEEDS 10000 KG, SESAME SEEDS 5000 KG, JEERA 12000 KG, SUOFF 3000 Kg. Total 30000 KG. E-way bill value: Rs. 33,23,250/- (with tax).” 2.5 The respondent-officer, on physical verification of the goods, found that the name of the processor and packer of Unjha was printed on the seal packed goods and, therefore, inferred that the goods were not loaded from Rajasthan as stated in the aforesaid documents, but the same were loaded from Unjha at Gujarat. 2.6 It appears that thereafter, the proprietor of the transport agency came and submitted that the department has served him the notice and order regarding further proceedings of the interception of the vehicle and thereafter, physical verification report in Form GST MOV-04 was prepared and served upon the transporter on 11.12.2023 and detention order in Form GST MOV-06 was prepared with primary finding of the discrepancies in the said matter and served upon the transporter on 11.12.2022. It is pertinent to note that the petitioner has not joined the transporter in this petition to whom the aforesaid documents are stated to have been served by the respondent authorities as stated in the impugned order passed in Form GST MOV-11 for confiscation of the goods and levy of fine, tax penalty as provided under Section 130 of the CGST Act. 2.7 It appears that after that the petitioner by letter dated 15.12.2023 against the order passed in Form MOV-06, submitted that he has purchased and loaded the intercepted goods from Jalore - Sanchore, Rajasthan, without giving any evidence for such purchase. 2.8 Thereafter, it appears that by letter dated 19.12.2023, the respondent authorities have called upon the petitioner for personal hearing on 26.12.2023, but no one remained present on the said date or filed any reply seeking time. 2.8 Thereafter, it appears that by letter dated 19.12.2023, the respondent authorities have called upon the petitioner for personal hearing on 26.12.2023, but no one remained present on the said date or filed any reply seeking time. 2.9 On account of failure on part of the petitioner to furnish the reply before the above date, the department issued show cause notice in Form GST MOV-10 under Section 130 dated 2.1.2023, whereby the petitioner was called upon to show cause as to why an order for confiscation of the goods in question should not be passed for the following discrepancies: “(a) Documents was not tendered at the time of interception of vehicle inspit-of sufiicient time was given. (b) The vehicle number mentioned in invoice and eway is difierence from actual intercepted vehicle's number. (c) As per tender documents goods is in movement from Sanchore, Jalore, Rajasthan to Andhra Pradesh whereas as per the statement of driver and as per actual interception the vehicle is in movement from Palanpur, Gujarat to towards Rajasthan. So, the documents tendered after interception is not for this vehicle and not for this transaction. (d) Vehicle number mentioned in e-way and invoice was RJ39GM5167 whereas actual vehicle number is RJ39GB5167. (e) Wrong GSTIN of recipient 33MNIPK7073GIZE mentioned in tendered Invoice no. 09 dated 08/12/2023. (f) As per taxpayer's reply letter date 15/12/2023, goods was purchased and loaded from Jalore, Sanchore, Rajasthan. But supporting evidence of purchase and loading from Jalore, Sanchore, Rajasthan was not produced. (g) Department had issued a letter date 19/12/2023 to taxpayer for personal hearing on date 26/12/2023. But taxpayer neither remain present on said date nor replied to the letter. Moreover, registered mobile number of the Proprietor of M/s Hari Enterprise is also not reachable. (h) Department have issued a letter to Concern jurisdiction of M/s. Hari Enterprise for spot verification. Concern jurisdiction vide its letter no GST-05/FAKE/06/CGST Jalore/2019/1310 dated. 22/12/2023 replied that business premises of M/s. Hari Enterprise was visited by the ofiicers of their ofiice and the taxpayer was found non-existence. A copy of Panchnama drawn on spot is also submitted with the said letter. Jurisdictional authority has served a show cause notice to M/s Hari Enterprise for cancellation of registration on dated 30/12/2023 under section 29 (2) (e) registration obtained by means of fraud, willful misstatement or suppression of fact. A copy of Panchnama drawn on spot is also submitted with the said letter. Jurisdictional authority has served a show cause notice to M/s Hari Enterprise for cancellation of registration on dated 30/12/2023 under section 29 (2) (e) registration obtained by means of fraud, willful misstatement or suppression of fact. (i) As per online record available with this ofiice, following are the discrepancies noticed during the analysis. (j) M/s. Hari Enterprise have Registration Start Date from Dated 03/11/2023. But still today (i.e. 27/12/2023) taxpayer have not filed return. (k) As per e-way bill data following are the inward and outward of M/s. Hari Enterprise. OUTWARD E-WAY BILL GENERATED (AS ON DATED 27.12.2023) MONTH ASSE. VALUE TAX VALUE TOTAL NOVEMBER 11489550 574477.5 12064027.5 DECEMBER 11255000 562750 11817750 TOTAL 22744550 1137227.5 23881777.5 xxx xxx xxx INWARD E-WAY BILL GENERATED (AS ON DATED 27.12.2023) MONTH ASSE. VALUE TAX VALUE TOTAL NOVEMBER 0 0 0 DECEMBER 0 0 0 TOTAL 0 0 0 (l) Here, M/s. Hari Enterprise is only generating outward e-way bill. No inward e way bill is available on online database. M/s. Hari Enterprise had told in his reply that they have purchased the intercepted goods from Sanchore, Rajasthan. If the goods in question was purchased from Sanchore, Rajasthan then why the inward e-way bill is not generated? If the goods in question was purchased from Sanchore, Rajasthan then how the goods of Ujha reached to Sanchore, Rajasthan? Because the address of manufacturing on packing bags is of Unjha. So, we have strong reasons to believe that M/s Hari Enterprise is engaged in activity of passing fraudulent ITC, as there is only outward supply with no inward supply. Hence, the intention is to evade the tax.” 2.10 The petitioner filed reply dated 7.1.2024 which was received by the respondent on 10.1.2024. Thereafter, the petitioner filed Special Civil Application No. 197 of 2024 before this Court and by order dated 11.1.2024, this Court directed the respondent to consider the representation dated 15.12.2023 within a period of two weeks. The respondent thereafter re-considered the representations made by the petitioner on 15.12.2023 and 7.1.2024. However, as no details were submitted by the petitioner and discrepancies pointed out by the respondent in Form GST MOV-10, again another show cause notice dated 15.1.2024 was issued by the respondent authorities so as to grant an opportunity of hearing to the petitioner, as directed by this Court. However, as no details were submitted by the petitioner and discrepancies pointed out by the respondent in Form GST MOV-10, again another show cause notice dated 15.1.2024 was issued by the respondent authorities so as to grant an opportunity of hearing to the petitioner, as directed by this Court. 2.11 Show cause notice dated 15.1.2024 described the following discrepancies for which the petitioner was called upon to submit the reply: “(a) After physical verification of the goods loaded in the said vehicle, we have issued detention memo in FORM MOV-6. You have replied against MOV-06 vide your letter dated 15/12/2023. As per your statement, you have mentioned that you have purchased the goods from Sanchore and the same was transported from Sanchore. But you have neither produced any evidence regarding purchase of goods from Sanchore nor produced any other evidence regarding the goods loaded from Sanchore and loaded vehicle movement from Sanchore. Your reply is incomplete and without any evidence. So, your reply is not acceptable. (b) As your reply is incomplete, not in detailed and without any evidence, Department have issued a letter Dated 19/12/2023 In order to represent yourself in natural justice. This letter was issued to your registered residential address and your registered principal place of business address. This letter was also e-mailed on your registered mail id. But you have neither replied to Department's letter dated 19/12/2023 nor remain present on dated 26/12/2023 as mentioned in the said letter. (c) So, Department have issued a Show Cause Notice in FORM GST MOV-10 under section 130 of CGST Act, 2017. The notice was dispatched to residential address of proprietor and principal place of business of Hari Enterprise as well as registered address of transporter M/s Shri Baba Shyam Cargo Movers. This notice was also e-mailed on registered address of M/s Hari Enterprise and M/s Shri Baba Shyam Cargo Movers. (d) You have replied against MOV-10 vide your reply dated 07/01/2024. You have mentioned in your reply that with regard to discrepancy (a) is concerned the Hari Enterprise got its GSTIN on 03/11/2023 and as per the provision of Act, to file the return a GSTIN holder can file his return either monthly or quarterly or annually. Circular no. 143/13/2020-GST dated 10/11/2020 has mentioned in detail about QRMP Scheme (Quarterly Return Monthly Payment). Annual turnover should be less than 5 crores to file quarterly return. Circular no. 143/13/2020-GST dated 10/11/2020 has mentioned in detail about QRMP Scheme (Quarterly Return Monthly Payment). Annual turnover should be less than 5 crores to file quarterly return. The turnover of Hari Enterprises from 03/11/2023 to 27/12/2023 is 2.39 crores. Since the turnover has not increased from 5 crores, even if we consider it eligible for quarterly return, Hari Enterprise has to pay tax monthly. Hari Enterprise has also not paid Monthly Tax. Additionally, Hari Enterprises has selected the option of Monthly return filling on the GST portal. As proof of which, the screen shot taken from www.gst.gov.in showing the details of the option selected by Hari Enterprise to file the return is enclosed herewith as Annexure-A. (e) You have mentioned in your reply that as you started having business, the GSTIN came to be suspended by serving a show cause notice dated 30/12/2023 It is to inform you that Hari Enterprise is not existing at its principal place of business during the spot verification and from neighborhood no one knows about your firm at that place. So for that reason and after following due procedure, concerned authority have served you notice of cancellation of registration. After issuance of show cause notice for suo-moto cancellation of registration, taxpayer can file return and able to pay tax too. Online portal allows the taxpayer to file his pending return and allowed to pay the tax. In-spite of that you have neither filed return nor paid tax. (f) You have mentioned in your reply that you have purchased goods from agriculturists who are exempted under section 23 (1) (b) and therefore, you were not required to generate inward e-way bills for the same and therefore, the same has not been generated. For this point Department want to clarify that inward e-way bill means if you have purchased a goods from the registered taxpayer and this registered taxpayer generate outward e-way bill then his outward e-way bill will become your inward e-way bill. (g) You have mentioned that you have purchased goods from other local business entities, the intercity transactions, tax invoices are generated and the same are uploaded when the GSTIN holder makes payment of tax either monthly, quarterly or annually. You have also submitted invoices of purchase from M/s Kohinoor Enterprise. M/s Kohinoor Enterprise is registered from 20/10/2022 having its principal place of business at SHOP NO. You have also submitted invoices of purchase from M/s Kohinoor Enterprise. M/s Kohinoor Enterprise is registered from 20/10/2022 having its principal place of business at SHOP NO. 1, CHEL SING S/O BHANWAR SINGH, Dhanau Dhorimana Gudarnalani Bor Road, Aalam General Store, gudarnalani, Guneshaniyon Ki Dhani, Barmer, Rajasthan, 344704. The distance between your registered place and M/s Kohinoor Enterprise's registered place is about 135 kilometer. No e-way bill has been generated by the seller M/s Kohinoor Enterprises even though the bill amount is more than 1 lakh and the distance is 135 km. (h) The transactions of Kohinoor Enterprises, the registered taxpayer from whom Hari Enterprises has purchased goods and submitted the bills of purchase, also seem suspicious. M/s Kohinoor Enterprises is registered from 20/10/2022. The online system of GST shows that Kohinoor Enterprises has purchased from the dealer as mentioned below. (a) Mahadev Enterprise (Ab-initio Cancel) (b) Dev Trading Company (An-Initio Cancel) (c) Durga Enterprise: Durga Enterprise has purchased goods from M/s Kohinoor Enterprises and other 11 taxpayers. All the 11 taxpayers are suo-moto or ab-initio cancelled now. Durga Enterprise has used 100% ITC to set office his tax liability. (d) Balaji Enterprise: Balaji Enterprises has purchased goods from M/s Kohinoor Enterprises and 2 other taxpayers. All these 2 taxpayers are ab-initio cancelled. Balaji Enterprises has used 100% ITC to set office tax liability. (i) So, prima facie M/s Kohinoor Enterprise is also involved in activity of passing fraudulent ITC.” 2.12 The petitioner filed the reply on 19.1.2024 contending as under: “1. The undersigned, submits that the undersigned has been granted GSTIN: 08GVWPR5673D1ZO by the appropriate authority in state of Rajasthan, after due verification of the place of business as well as all the documents which has been supplied by the undersigned under the provisions of the CGST and is running its business from the Jalore, Rajasthan as mentioned herein above. 2. Undersigned states that the undersigned received a purchase order from one Ashoka Enterprises which is situated at 30-1-7, Surya Nilayam, Rangayyanaidu Street, Srinivas School Suryanarayana Puram, Kakinada, Andhra Pradesh-533001 having GSTIN: 37MNIPK7073G1ZE for purchase of following goods: The copy of the purchase order dated 02/12/2023 is hereby marked and annexed herewith as Annexure-A. 3. 2. Undersigned states that the undersigned received a purchase order from one Ashoka Enterprises which is situated at 30-1-7, Surya Nilayam, Rangayyanaidu Street, Srinivas School Suryanarayana Puram, Kakinada, Andhra Pradesh-533001 having GSTIN: 37MNIPK7073G1ZE for purchase of following goods: The copy of the purchase order dated 02/12/2023 is hereby marked and annexed herewith as Annexure-A. 3. Undersigned states that as undersigned is situated in Jalore District of Rajasthan and was not having sufiicient amount of goods which he was supposed to supply by 09/12/2023 as per the purchased order dated 02/12/2023 and therefore, the undersigned purchased the aforementioned goods from various farmers. The copy of the purchase bills are hereby marked and annexed herewith as Annexure-B. 4. Undersigned states that to supply the aforementioned goods to the consignee situated in Andhra Pradesh, Tax-invoice came to be generated by the undersigned on 08/12/2023, however, due to some typographical mistakes on the part of undersigned the conveyance number (RJ39GM5167) and GSTIN (33MNIPK7073GIZE) of Consignee was mentioned wrongly. It is submitted that the mistake with regards to GSTIN of Consignee came to be traced and corrected (37MNIPK7073G1ZE) by the undersigned, however, mistake with regards to vehicle number which was carrying the goods could not be traced at the time of generation of Tax invoice and therefore, same came to be reflected in the e-way bill dated 09/12/2023 and other documents too. The copy of the Tax-invoices as well as E-way bill dated 09/12/2023 are hereby marked and annexed herewith as Annexure-C 'Colly'. It is submitted that the corrected came to be generated at 12:42 am on 09/12/2023. 5. Undersigned states that with regards to corrected GSTIN of the consignee is concerned fresh Tax-Invoice came to be supplied to the Driver of the vehicle and was also instructed to driver of the vehicle to destroy the Tax Invoice which has mistakes so that there would not be any chance of confusion or fault, however, driver has not followed the instructions of the undersigned. 6. Undersigned states that as the conveyance was leaving for Kakinada, Andhra Pradesh from Sanchore, Jalore, Rajasthan, as the direct route to Abu Road was closed(as per information received), and the transporter office is in Abu Road, The conveyance driver took the route of Sanchore-Deesa-Palanpur-Abu road so that he could collect some cash amount from transporter. 7. 6. Undersigned states that as the conveyance was leaving for Kakinada, Andhra Pradesh from Sanchore, Jalore, Rajasthan, as the direct route to Abu Road was closed(as per information received), and the transporter office is in Abu Road, The conveyance driver took the route of Sanchore-Deesa-Palanpur-Abu road so that he could collect some cash amount from transporter. 7. Undersigned states that on 09/12/2023, the conveyance carrying goods of the undersigned came to be intercepted by your good self no. 3 between Palanpur-Aburoad Highway around 2:34 am and as mentioned herein above on the ground of discrepancies in the documents carried by the Driver which was nothing but innocuous typographical mistakes, the vehicle came to be stationed at GST Amirgadh Check Post by respondent authorities. It is further submitted that on 09/12/2023, MOV-1, MOV-2 and also after doing physical verification MOV-4 came to be generated by your good self. It is pertinent to note here that the respondent no. 3 authority has jurisdiction over its own Division i.e. Division-1 (Ahmedabad) and not Division 4 (Mehsana) where the conveyance came to be intercepted by the respondent no. 3 and detained. 8. Undersigned states that after physical verification of goods, your good self no. 3 authority was pleased to issue MOV-6 dated 11/12/2023 under section 129(1) of the CGST Act, 2017 and under other relevant provisions and was pleased to detain the goods as well as conveyance (RJ39GB5167) on the ground of discrepancies in of vehicle registration number and GSTIN of the consignee without considering the fact that these are typographical mistakes and the goods carried by the conveyance are of perishable nature and there are specific provisions in the CGST, Act as well as various administrative instructions which say that perishable goods shall be released by the authorities after payment of appropriate penalty and upon furnishing security. 9. Undersigned states that the detention order dated 11/12/2023 in the form of FORM GST MOV-6 is absolutely unjust and without jurisdiction of your good self authorities as the conveyance carrying goods has not entered the territorial jurisdiction of your good self no. 2 and 3 authorities which is clear from the MOV-1, MOV-2, MOV-4 and MOV-6. It is further stated that your good self no. 3 has went beyond the territorial jurisdiction and detained the conveyance carrying perishable goods and this act of your good self no. 2 and 3 authorities which is clear from the MOV-1, MOV-2, MOV-4 and MOV-6. It is further stated that your good self no. 3 has went beyond the territorial jurisdiction and detained the conveyance carrying perishable goods and this act of your good self no. 3, itself creates doubt on the conduct of your good self authorities. The undersigned further state that there are only minor innocuous typographical mistakes occurred in the documents will not give rise to any illegality and even if there is an apprehension/suspicion on the part of the your good self authorities about the transaction. 10. It is further submitted that the conveyance no. RJ39GB5167 is carrying perishable goods and kept in open air and therefore, may reduce its quality and efiect the price if goods are kept in present situation and therefore, the undersigned filed an application/representation dated 15/12/2023 to release the aforementioned goods as per the provisions of Central Goods and Services Tax Act and Rules, 2017 and other relevant provisions as soon as possible in the interest of justice. It is submitted that in connection with the MOV-10, the undersigned states that discrepancies mentioned in the said MOV-06 has already been replied by the undersigned by way of reply dated 15/12/2023 and in connection with further discrepancies enumerated in MOV-10, the undersigned states that the undersigned has already given reply dated 07/01/2024 to your good self with regards to discrepancies therefore, the same may not be repeated here again. 11. Undersigned states that the with regards to goods transported from Sanchore, Jalore, Rajasthan is concerned, the undersigned states that the undersigned has already annexed the Tax invoice and e-way bill along with this reply which came to be supplied at the time of interception of the conveyance, the undersigned states that the undersigned has no intention to evade the tax, and undersigned states that undersigned is ready and willing to produce all the documents which ever is required by your good self. 12. Undersigned states that the undersigned, after knowing the fact that he could file the return even after the GSTIN has been suspended by the concerned authorities, have contacted a nearby Charted Accountant and requested to help him in filing the return and the undersigned has already filed the return which may now showing in the portal of your good self. 13. 13. Undersigned states that in connection of the MOV-06 dated 11/12/2023 and MOV-10 dated 02/01/2024 is concerned, the undersigned has already approached the Hon'ble High Court of Gujarat by way of preferring Special Civil Application No. 197/2024 and after extensive hearing, the Hon'ble High Court was pleased to pass an order dated 11/01/2024 whereby the Hon'ble High Court was pleased to direct your good self to consider and decide the application/representation dated 15/12/2023 In consonance with section 67(6) of the CGST Act, 2017, however, the despite the said order your good self has still not considered the said application as per the order of the Hon'ble High Court. The undersigned request your good self to release the perishable goods which may deteriorate if kept in open for long and which may cause loss to the undersigned and therefore, the undersigned request your good self to decide the application dated 15/12/2023 and release the perishable goods as these goods are edible seeds as per the provisions of 67(6) as undersigned is ready and willing to comply the conditions of release of goods as mentioned in Section 67(6) of CGST Act, 2017. The copy of the order dated 11/01/2024 passed in Special Civil Application No. 197/2024 is hereby marked and annexed herewith as Annexure-D.” 2.13 It is the case of the petitioner that the respondent authorities cannot assume the jurisdiction under Section 130 of the CGST Act once the goods were intercepted under Section 129 of the Act. After considering the aforesaid reply of the petitioner in detail on each point, the respondent authority passed the impugned order in From-GST MOV-11 in compliance with the direction issued by this Court vide order dated 11.1.2024 and levied the penalty of Rs. 2,51,500/- and fine in lieu of confiscation of the goods amounting to Rs. 50,30,020/- and fine in lieu of confiscation of conveyance of Rs. 2,51,500/-. 2.14 It appears that the petitioner by letter dated 9.2.2024 addressed to the respondent No. 4 - State Tax Officer-4 to upload the proceedings and order under Section 130 on GSTIN portal to enable the petitioner to file an Appeal. 2.15. 50,30,020/- and fine in lieu of confiscation of conveyance of Rs. 2,51,500/-. 2.14 It appears that the petitioner by letter dated 9.2.2024 addressed to the respondent No. 4 - State Tax Officer-4 to upload the proceedings and order under Section 130 on GSTIN portal to enable the petitioner to file an Appeal. 2.15. In response to the aforesaid letter, the respondent authority has created a temporary GST number 242400000174TMP for the petitioner as the petitioner was registered under Rajasthan GST Act, 2017 and the proceedings have taken place at Gujarat, as the goods were intercepted in Gujarat as per the provision of Section 25 of the GST Act read with Rule 16 of the GST Rules. The respondent authority uploaded all the documents upon the portal in relation to the said temporary GSTIN number. 3. Being aggrieved, the petitioner has preferred this petition with the aforesaid prayers, raising grievance that the respondent authorities could not have created temporary registration number and prayed for quashing and setting aside the order for granting temporary registration number. 4. It was contended by learned advocate Mr. A.S. Tripathi that the order passed for creating temporary registration was never served upon the petitioner and, therefore, the same is not annexed with this petition. It was also prayed by the petitioner that the respondent authority should be directed to upload all the documents at the registration number of the petitioner with the Rajasthan GST authority and release such goods and conveyance which were ordered to be confiscated by the respondent authority in view of the fact that the respondent authority could not have created a temporary registration number and as such, the petitioner is deprived of filing an Appeal as provided under Section 107 of the GST Act. 5. In response to the notice issued by this Court vide order dated 14.3.2024, the respondent No. 4 has filed an exhaustive reply, wherein it is contended that along with the documentary evidence to show that the petitioner has misused the provisions of the GST Act by issuing the invoices showing that the goods are purchased from Rajasthan, though such goods were loaded from Unjha, Gujarat. It was further stated in the reply that the respondent has inquired with the Rajasthan GST authority and the investigation report has been placed on record at Page-108, stating that on confidential spot visit of the business premises of the petitioner - M/s. Hari Enterprise, Shop No. 5, Ganpati Market, NH 68, Maruti Suzuki Arena, Shri Krishna Auto Sales, Sanchore, Jalore, Rajasthan-343 041 with GSTIN 08GVWPR5673D1ZO, it was submitted that the business premises of the petitioner was visited by the officer of the Rajasthan GST department and the petitioner was found non-existent and a Panchnama is also placed on record at Page-105 of the paper-book. 6. It appears that thereafter, by order dated 23.2.2024, the registration of the petitioner at Rajasthan is also cancelled after issuance of the show cause notice dated 30.12.2023. 7. Learned advocate Mr. A.S. Tripathi for the petitioner submitted that the petitioner would like to file an appeal under Section 107 of the GST Act, challenging the impugned order passed in Form GST MOV-11 and, therefore, he may be permitted to withdraw this petition. However, considering the facts of the case and the modus operandi which the petitioner has adopted by misusing the provisions of the GST Act which is very apparent from the reasons recorded in the impugned order passed by the GST authority under Form GST MOV-11, we refused the petitioner to permit the petitioner to withdraw this petition 8. Section 25 of the GST Act provides for procedure for registration. Sub-Section (8) of Section 25 authorizes the officer of the GST department to make a temporary registration that if a person who is liable to be registered as per Section 24 of the GST Act fails to obtain registration, the proper officer may suo motu register such person which may be deemed necessary under this Act or any other law for the time being in force in such a manner as may be prescribed. The procedure prescribed under Rule 16 of the GST Rules is as under: “Suo motu registration: 16. (1) Where, pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, the proper officer finds that a person liable to registration under the Act has failed to apply for such registration, such officer may register, the said person on a temporary basis and issue an order in FORM GST REG-12. (1) Where, pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, the proper officer finds that a person liable to registration under the Act has failed to apply for such registration, such officer may register, the said person on a temporary basis and issue an order in FORM GST REG-12. (2) The registration granted under sub-rule (1) shall be effective from the date of such order granting registration. (3) Every person to whom a temporary registration has been granted under sub-rule (1) shall, within a period of ninety days from the date of the grant of such registration, submit an application for registration in the form and manner provided in rule 8 or rule 12: Provided that where the said person has filed an appeal against the grant of temporary registration, in such case, the application for registration shall be submitted within a period of thirty days from the date of the issuance of the order upholding the liability to registration by the Appellate Authority. (4) The provisions of rule 9 and rule 10 relating to verification and the issue of the certificate of registration shall, mutatis mutandis, apply to an application submitted under sub-rule (3). (5) The Goods and Services Tax Identification Number assigned, pursuant to the Verification under sub-rule (4), shall be effective from the date of the order granting registration under sub-rule (1).” 9. On perusal of the above Rule, sub-rule (1) provides that pursuant to survey, enquiry, inspection, search or any other proceedings under the Act, the proper officer finds that a person liable to be registered under the Act has failed to apply for such registration, the officer may register the said person on a temporary basis and issue an order in FORM GST REG-12. Sub-rule (3) provides that every person to whom temporary registration has been granted, shall, within a period of ninety days from the date of the grant of such registration, submit an application for registration in the form and manner provided in Rule 8 or Rule 12. Proviso to sub-rule (3) provides that the person may file an appeal against the grant of temporary registration, in such case, the application for registration shall be submitted within a period of thirty days from the date of the issuance of the order upholding the liability to registration by the Appellate Authority. Proviso to sub-rule (3) provides that the person may file an appeal against the grant of temporary registration, in such case, the application for registration shall be submitted within a period of thirty days from the date of the issuance of the order upholding the liability to registration by the Appellate Authority. In this context, it would be germane to refer to Section 24 which provides for compulsory registration, which reads as under: “Compulsory registration in certain cases: 24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act: (i) persons making any inter-State taxable supply. (ii) casual taxable persons making taxable supply. (iii) persons who are required to pay tax under reverse charge. (iv) persons who are required to pay tax under sub-section (5) of section 9. (v) non-resident taxable persons making taxable supply. (vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act. (vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise. (vii) Input Service Distributor, whether or not separately registered. (ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52. (x) every electronic commerce operator [who is required to collect tax at source under section 52]. (xi) every person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person. (xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council.” 10. As per clause (i), a person making any inter-State taxable supply is required to have compulsory registration notwithstanding anything contained in sub-section (1) of Section 22. The petitioner was not having the registration for inter-state supply from Unjha to Andhra Pradesh and accordingly, the respondent authority was justified in creating temporary registration. As per clause (i), a person making any inter-State taxable supply is required to have compulsory registration notwithstanding anything contained in sub-section (1) of Section 22. The petitioner was not having the registration for inter-state supply from Unjha to Andhra Pradesh and accordingly, the respondent authority was justified in creating temporary registration. Considering the gross facts of the case where it is very apparent that the petitioner has indulged in misusing the provisions of the GST Act by issuing the bills for the goods which were loaded from Gujarat to be transported to Andhra Pradesh showing that the goods have been purchased from Jalore - Sanchore at Rajasthan, further investigation is required to be made by the respondent authority along with the Rajasthan GST authority. We, therefore, direct the respondent authority to conduct the thorough inquiry in the matter and find out the modus operandi adopted by the petitioner and take proper action under the provisions of the GST Act in accordance with law. 11. With the aforesaid directions, the petition is dismissed with no order as to costs.