Order Date – 02 February 2023

Parties: M/S Varun Beverages Limited Vs State Of U.P. And 2 Others

Facts –

• The Petitioner, M/s Varun Beverages Limited, was making a stock transfer from its unit to a sale depot. 
• The mobile squad on 10.06.2018 intercepted the goods and detained the vehicle in question along with the goods on the premise that in the e-way bill the vehicle number has been mentioned incorrectly. Thereafter, a penalty order under Section 129(3) of the Act of 2017 was passed imposing tax.

Issue –

• Whether the penalty order under Section 129(3) is in order?

Order – 

• The Hon’ble High Court held it is a case of stock transfer and there is no intention on the part of dealer to evade any tax and minor discrepancy in Part-B of as to the registration of vehicle in State in the e-way bill would not attract proceedings for penalty under Section 129 and the order passed by the detaining authority as well as first appellate authority cannot be sustained.
• Hence the orders dated 12.06.2018 and 01.07.2019 are unsustainable and set aside. The Writ petition is allowed.