GST - Tax Paid and Penalty Levied on Detention of Goods

My client was carrying goods without Bill and E-way Bill and therefore his goods were detained and Tax and Penalty of one time was levied after the sales invoice was raised.

Now the enforcement officer is of the view that the amount paid under Tax heads cannot be adjusted against the output sales tax. What is the rationale behind it? If the amount cannot be adjusted then why the amount is being made to be deposited under the Tax Heads. Further let me clarify that the tax payer has come forward and paid the tax and penalty. In that case he should be allowed to adjust it against the tax payable by him at the time of filing of the returns.

Please give your opinions.

Replies (1)

When the goods are detained due to the non-filing of E way bill. Then , the tax payer need to make the payment of tax and equivalent penalty . 

The tax component can be used immediately for setting off tax liability but for refund of penalty , the case is to be filed with appellate authority .

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