GST
TRT-2025-
High court of Allahabad
Date:-12-08-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 12 Aug 2025
Parties: Sandeep v. State of U.P. & Anr.
Facts -
- The petitioner’s goods were detained under Section 129(3) of the UP GST Act on 09.07.2025. In reply, he produced a valid tax invoice and also submitted a wedding card of his niece, for which silver items had been purchased.
- The authorities did not dispute the invoice or the marriage but still proceeded with seizure and penalty.
Issue -
- Whether goods accompanied by a valid invoice, supported by evidence of genuine purchase, can be detained and subjected to penalty under Section 129, or whether Circular 76/2018 requires release under Section 129(1)(a)?
Order -
- The division bench of the Hon’ble High court held that where a proper invoice and E-Way Bill are produced, ownership is established and the goods must be released under Section 129(1)(a).
- The Department failed to disprove either the invoice or the marriage event. Following Sahil Traders and Sanjay Sales Agency, the Court quashed the detention order and directed release under Section 129(1)(a) upon payment of prescribed penalty.
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