GST
TRT-2025-
Allahabad High Court
Date:-06-08-22
In:-
Issue Favourable to Tax Payer ?:- 0
Order date – 06 August 2022
Facts –
- The petitioner, Mahavir Polyplast Pvt. Ltd. is a manufacturer of PVC pipes. They have approached this court after unsatisfactory results from other authorities. The present petition is against order dated 26.11.2019 passed by the Additional Commissioner Grade-2 confirming the penalty imposed under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act.
- The petitioner stores its raw materials and manufactured goods at a warehouse located on the same premises.
- On 07.08.2018, the business premises of the petitioner were subjected to a search and seizure operation by Special Investigation Branch of the Commercial Tax Department, Agra. Subsequently, a Panchnama dated 07.08.2018 was drawn alleging shortage of physical stock as compared to that recorded in the stock registers.
Issue –
- Whether imposing duty and penalty by an authority having no jurisdiction justifiable?
Order –
- The Court observed that the authorities of the Mobile Squad of Commercial Tax Department chose to act with negligence as the provision could not be invoked to subject a warehouse for search and seizure.
- The Court found out that they deliberately described the vehicle being checked as "UPGODOWN02" and "GODOWON" in the show cause notice issued dated 09.08.2018 by Assistant Commissioner (Mobile Squad), Unit-II Agra similarly in show cause notice issued dated 14.08.2018 by Assistant Commissioner (Mobile Squad)-5 Agra.
- The court held that the entire proceedings drawn up against it under Section 129(3) of the Act, are found to be without jurisdiction, hence the impugned order is quashed.
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