Penalty upheld as assessee failed to substantiate tax invoice weight with documents/bank statements for excess goods in transit – Calcutta High Court {S. N. Trading Co. V/s Union of India – (2025) 32 Centax 179 (Cal.)}
Issue:
Whether penalty imposed under Section 129 of CGST Act was justified when excess goods were found in transit beyond what was declared in the invoice and supporting documents.
Facts:
Goods were detained by authorities on the basis of a weighment slip indicating excess quantity than declared in the tax invoice, e-way bill, and consignment note. The petitioner failed to provide reliable material to dispute the weighment slip and did not furnish supporting documents like original purchase invoice, weighment certificate at loading point, or bank proof of payment by consignee.
Held:
The High Court upheld the penalty, holding that in writ jurisdiction under Article 226, it cannot reappreciate factual disputes regarding valuation. The petitioner had access to an alternate remedy under the CGST Act and failed to substantiate its claim with adequate evidence.
