Order Date – 12 February 2024

Parties: M/s Hawkins Cookers Limited Vs State Of U.P. And 2 Others

Facts –

• The Petitioner, M/s Hawkins Cookers Limited, is engaged in the business of manufacturing and selling of pressure cookers under the brand name of Hawkins. 
• They stock transferred certain raw materials from Maharashtra, to their factory. Four E-Way bills correctly mentioned place of supply for Satharia, Jaunpur; four erroneously mentioned non-manufacturing site in Kanpur.
• The goods were intercepted on January 31, 2020 and the memo of detention was issued on February 1, 2020 and subsequently the goods were seized on February 3, 2020 byissuing MOV-06.

Issue –

• Whether goods can be seized for erroneously mentioning the place of supply?

Order –

• The Single Bench of Hon’ble High Court observed that the explanation provided by the petitioner with regard to a mistake on the part of the supplier to have populated the incorrect address is not far fetched, especially since the correct addresses were mentioned in all the eight invoices and the eight bilties. Thus, it does not appear that there was any intention whatsoever to evade tax.
• Further, the mere technical error committed by the petitioner cannot result in imposition of such harsh penalty upon the petitioner. Hence, the penalty imposed in this particular case is without any basis in law.
• The writ petition is allowed.