Order Date – 06 October 2023

Parties: M/S Balaji Traders And Another Vs State Of U.P. And 2 Others

Facts –

• The Petitioner, M/S Balaji Traders, is engaged in the business of trading cigarette, pan-masala & food spices. They have suppose to transport goods through railway to one their supplier and generated Invoices dated 18.11.2022. 
• The goods were intercepted on 18.11.2022 outside the railway station, Thereafter, on 19.11.2022, a show cause notice was issued to the petitioner imposing a penalty. The petitioner then deposited the penalty amount and released the goods.
• However the Assistant Commissioner passed the impugned order dated 25.11.2022 confirming the penalty under section 129(1) of the SGST Act. Being aggrieved filed the present writ petition.

Issue –

• Whether the imposition of penalty under section 129(1) of the Act is proper?

Order –

• The Single Bench of Hon’ble High Court observe that the record reveals that at the time of issuing notice or passing the order under section 129(3) of the SGST Act, not a word has been whispered with regard to intention to evade payment of tax.
• The owner of the goods, along with documents, were inside the railway station for getting the Railway Receipt as the number of the Railway Receipt is to be mentioned in the e-way bill, Part –B. the petitioner, after getting the knowledge of the goods being intercepted and confiscated before passing the seizure order, but without considering the same, the impugned order under section 129(3) of the SGST Act has been passed.
• The Court further relied on the judgement of the Apex Court in M/s Satyam Shivam Papers Private Limited wherein it was held that , it has precisely been found that there was no intent on the part of the writ petitioners to evade tax and rather. By following the above the court held that the impugned orders cannot be sustained in the eyes of law. Further directed to refund the amount any deposited pursuant to the impugned order along with interest @ 9% per annum from the date of deposit of the amount till the actual payment made to the petitioner.