E sugam

This query is : Resolved

hitesh (Querist)
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07 May 2014 dear sir,
I am trader of hdpe mosquito net fabrics, our product catagory comes under exempted goods of vat.
Recently we purchased some hdpe granules from tamil nadu which comes under vat@5%. We had purchased this material with complete bill (345000+vat 17250) with vat paid on it along with all our details required.
The goods were under transit from tamilnadu to karnataka and it got held at bangalore check post for non attachment of e sugam form.
As this was first time we purchased some material for which e sugam was required and which was not under our knowledge.
Hence we have been sent a notice by the checkpost to our transporter for a penalty of Rs.63000/=
So kindly let us know what is the best we can do for this problem which we are unknowingly facing it. Hope to get your valued response immediatly as we have to reply by 10th may..
hitesh

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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07 May 2014 Mr Hitesh,
Here you are not entirely at fault. Production of e-sugam for bringing plastic granules(whatever name)as per entry no 26 of notification dated 5-3-14 part C is necessary.You can make a plea that the supplier did not give an earlier information on his date of dispatch, so that an e-sugam could be sent in time before loading the vehicle etc.You may say that when you placed orders the seller did not have ready stock and he sent the granules as soon as he received it etc.You can also plead that you are a regular in filing returns and paying taxes and your good are exempt,so no need to avoid or suppress any purchases etc.You may show them that you are a manufacturer and not a trader etc.The check post officer may release the goods without any penalty as some valid documents are produced at the check post or just two times the tax can be levied.....mjk