Order Date – 09 January 2023

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

Facts –

• The Petitioner, M/S Jyoti Traders, transported goods from Maharajganj, U.P. to Ludhiana, Punjab and eway bill was generated on 17.02.2018. The goods were intercepted by the mobile squad of the tax department on 21.02.2018 at Shamli.
• A show cause notice was issued under Section 129 (3) of U.P. GST Act imposing penalty and tax.

Issue – 

• Whether the imposition of tax and penalty are in order?

Order – 

• The Hon’ble High Court held that the GST Council had already dispensed with the mandatory provision of carrying e-way bill till 31.03.2018.
• The Court relied on the decision of the Division Bench of this Court in case of M/S Godrej & Boyce Manufacturing Co. Ltd. extending the benefit to all those assessee who during the relevant period had carried the goods without the e-way bill and matter is no more res integra.
• In view of the said fact, the taxing authorities were not justified in levying tax and imposing penalty.