GST – Allahabad High Court: 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 e-way bill pertaining to registration number of vehicle would not attract proceedings for penalty under Section 129 – Writ petition allowed [Order attached]
Order Date – 02 February 2023
Parties: M/S Varun Beverages Limited Vs State Of U.P. And 2 Others
- 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.
- Whether the penalty order under Section 129(3) is in 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.