GST
TRT-2025-
Allahabad High Court
Date:-06-11-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 06 November 2023
Parties: M/S Galaxy Enterprises Vs State Of U.P. And 2 Others
Facts –
- The Petitioner, M/S Galaxy Enterprises engaged in the business of manufacturing and sale of laminated papers. They Transported goods from Muzaffarnagar to Rajasthan along with tax invoices, E-way Bills and GR.
- Goods were intercepted during the transit and after physical verification Form GST MOV-04 was issued on the ground that the goods were found to be different than mentioned in accompanying documents. Thereafter a show cause notice was issued in Form GST MOV-07 on 27.1.2022.
- Being not satisfied with the reply fied by the petitioner, penalty was imposed by order dated 27.1.2022.
Issue –
- Whether imposition of penalty is valid if the documents have already been produced before passing of the detention or seizure order?
Order –
- The Single Bench of Hon’ble High Court observed that the authorities below has not accepted the documents on the ground that same were produced after the movement of goods. But lost the site of the fact that the discrepancies were cured before the detention or seizure order could be passed.
- Once the documents were produced before passing of the detention / seizure order, the authorities ought not to have proceeded further as held by the Division Bench judgement of this Court in the case of M/S Axpress Logistics India Pvt. Ltd and M/s Bhumika Enterprises.
- Hence it was held that the impugned order is not justified as the documents have already been produced before passing of the detention as well as seizure order. The writ petition is allowed and remanded back to the first appellate authority to pass afresh order.
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