06 February 2013
Respected Sir/Madam, We are registered under KVAT Act as manufacturer in Karnataka and have ordered cable from a Manufacturer at Gujrat(Consignor).The order for this manufacturer is for the first time. Now the consignor has sent the goods under a valid Invoice mentioning our TIN, but before dispatching the goods has failed to intimate us the dispatch details and thus the goods has entered Karnataka without e-sugam. Now the said goods has been held by the CTO for not accompanying the e-sugam. After receiving the notice from the CTO we have generated e-sugam. What is the penalty payable by us, if any and at what rate of tax,as the transaction is inter state against C Form. The CTO is asking us to pay 1.5 times of the tax payable,which is calculated @14.5% ie local rate of tax.Whether the CTO is correct by computing the penalty using the within state rate of tax i.e 14.5%?
If you have not submit E sugam prior to movment. In this case you should have to deposit 40% of invoice value as security amount with department and release your goods.
after this you can file a requeste appeal with department to this mistakes and request to reverse this amount.
after the case assessment department will release the order.
CAclubindia
