GST
TRT-2025-
High court of Allahabad
Date:-04-09-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 04 Sept 2025
Parties: M/s Cj Darcl Logistics Ltd. v. State of U.P. & Ors.
Facts -
- The petitioner, a logistics company, transported HR coils from Tata Steel Ltd., Kanpur, to Punjab under valid invoices and e-way bills. The truck broke down en route at Ghaziabad and required repair. During this time, the e-way bills expired.
- The goods were later intercepted and seized despite the driver producing an updated e-way bill before final seizure. Authorities passed penalty orders under Section 129(3), later upheld in appeal.
- The petitioner argued that there was no intent to evade tax since goods had valid documents, supported by repair bills, and relied on prior High Court rulings (Shyam Sel and Power Ltd., Harley Foods Products Pvt. Ltd., OSR Creation).
Issue -
- Whether mere expiry of an e-way bill during genuine vehicle breakdown, despite supporting evidence and valid invoices, constitutes grounds for seizure and penalty under Section 129(3) of the GST Act?
Order -
- The Court noted that the goods were accompanied by proper invoices and e-way bills; only expiry occurred due to the breakdown, substantiated by evidence.
- No discrepancy in quality/quantity of goods or intent of tax evasion was found. Consistent with earlier rulings, penalty proceedings under Section 129(3) cannot be sustained where no tax evasion is established.
- The impugned orders were quashed. Any deposit made by the petitioner was directed to be refunded in accordance with law.
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