Case Details: Raj Rajeshwari Tecchno Fab (P.) Ltd. vs. Additional Commissioner Grade 2 Appeal 6 State Tax Kanpur - [2025] 177 taxmann.com 514 (Allahabad)
Judiciary and Counsel Details
- Piyush Agrawal, J.
- Aditya Pandey for the Petitioner
Facts of the Case
The petitioner, a registered dealer, was transporting goods when the vehicle was intercepted by the jurisdictional officer under CGST. Upon verification, it was found that the e-way bill accompanying the consignment had expired. A show cause notice was issued and penalty was demanded by way of order in Form MOV-09. The petitioner challenged the proceedings on the ground that the vehicle had met with an accident during transit and the driver, being unfamiliar with GST requirements, failed to timely communicate the incident, resulting in non-renewal of the e-way bill. It was submitted that a fresh and updated e-way bill was generated before passing of the seizure order, and there was no discrepancy with regard to the quality, quantity, or nature of goods. The appellate authority, however, upheld the order, leading the petitioner to approach the High Court.
High Court Held
The High Court held that once an updated e-way bill had been generated and produced prior to the passing of the seizure order, the detention and penalty proceedings could not be sustained in law. It observed that the record clearly established absence of any discrepancy in the consignment and that the only lapse was the expiry of the earlier e-way bill due to unforeseen circumstances. The Court emphasized that section 129 contemplates proceedings only where there is intent to evade tax, and in the present case no such finding was recorded by the jurisdictional authority. It accordingly quashed the impugned orders and allowed the petition.
List of Cases Reviewed
- Ashoka P.U. Foam (India) Pvt. Ltd. v. State of UP [Neutral Citation No. 2024:AHC:11844]
- Globe Panel Industrial India Pvt. Ltd. v. State of UP [2024] 159 taxmann.com 203/102 GST 851/83 GSTL 287 (Allahabad)
- Sarvottam Rolling Mills Pvt. Ltd. v. State of UP [Neutral Citation NO. 2018:AHC:191778-DB] (Para 11), followed
List of Cases Referred to
- Ashoka P.U. Foam (India) Pvt. Ltd. v. State of UP [Neutral Citation No. 2024:AHC:11844] (para 6)
- Globe Panel Industrial India Pvt. Ltd. v. State of UP [2024] 159 taxmann.com 203/102 GST 851/83 GSTL 287 (Allahabad) (para 6)
- Sarvottam Rolling Mills Pvt. Ltd. v. State of UP [Neutral Citation NO. 2018:AHC:191778-DB] (para 6)
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