GST
TRT-2025-
High court of Allahabad
Date:-17-09-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 17 Sept 2025
Parties: M/s VRS Foods Ltd. v. Additional Commissioner Grade-2 & Ors
Facts -
- Petitioner sold battery scrap to M/s Shiva Traders. The Vehicle carrying goods was diverted for weighment; no documents were present during interception.
- Goods detained on 28.02.2022; order passed under Section 129(3) UPGST Act. Appellate authority reduced penalty to ₹1,43,100/-.
- Petitioner argued exemption under Rule 138(14)(n) (movement within 20 km for weighment) and lack of tax evasion intent.
Issue –
- Whether penalty under Section 129(3) is sustainable when goods are moved for weighment without documents?
Order -
- The Court held that documents must accompany goods during transit; later production cannot cure initial non-compliance.
- Rule 138(14)(n) does not waive the need for delivery challan/e-way bill in weighment cases.
- Accepting petitioners argument would frustrate Section 129, enabling afterthought justifications. Writ petitions dismissed; penalty confirmed as valid.
Download Case Law
