M/s Balaji Electronics Pvt. Ltd. of Chennai, Tamilnadu, handed over certain goods to transporter M/s Super Fast Roadways on 15th December, 2024 to…
CA Final · Indirect Tax Laws · PYQS · September 2025
M/s Balaji Electronics Pvt. Ltd. of Chennai, Tamilnadu, handed over certain goods to transporter M/s Super Fast Roadways on 15th December, 2024 to be delivered to M/s Anna Electronics in Vellore, Tamilnadu amounting to 3,00,000. The said goods were chargeable to tax @ 18% GST (9% CGST & 9% SGST). The proper officer intercepted the vehicle under section 68 of the CGST Act, in transit and seized the goods on 16th December, 2024. No one came forward to release the consignment till 31st December, 2024, so the proper officer issued a penalty order under section 129(3) of the CGST Act. M/s Balaji Electronics Pvt. Ltd. did not admit to the entire penalty amount specified in the order and hence filed an appeal to the Appellate Authority (AA) against the said order. From the above information given above, calculate: (i) The amount of pre-deposit required to be deposited for filing appeal to AA under section 107(6) of the CGST Act against the order passed under section 129(3) of the CGST Act. (ii) The amount to be paid by M/s Super Fast Roadways for release of its conveyance under section 129 of the CGST Act. Your answer should include explanations with necessary provisions in brief.
Suggested Answer and Working Notes:
(a) (i) Since no one came forward to release the consignment, penalty payable under section 129 (3) is as follows: (a) 50% of value of goods [₹ 1,50,000 (₹ 3,00,000 × 50%)] or (b) 200% of tax payable on goods [₹ 54,000 (₹ 3,00,000 × 9% × 200%)] whichever is higher, i.e. penalty will be:3,00,000 (₹ 1,50,000 each under CGST and SGST) Pre-deposit required to be deposited for filing an appeal to AA against an order passed under section 107 (6) is as follows: = 25% of the penalty under section 129 (3) [as above] = 25% of 1,50,000 i.e. pre-deposit will be : = 75,000 (₹ 37,500 each under CGST and SGST) (ii) Amount to be paid by M/s Super Fast Roadways for release of its conveyance under section 129 is as follows: (a) Penalty under section 129 (3) (as computed in above) [₹ 1,50,000] or (b) ₹ 1,00,000 whichever is less, i.e., pre-deposit will be :2,00,000 (₹ 1,00,000 each under CGST and SGST)
Topics: Appeals and Revision
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