Order Date – 10 July 2025

Parties: M/s Tirupati Agro Commodities Vs State of U.P. And 2 Others

Facts –

• The Petitioner,  M/s Tirupati Agro Commodities, passed an order imposing penalty alleging misclassification of goods during transportation, although all necessary documents like invoices and e-way bills were present, and there was no valuation dispute.

Issue –

• Whether a penalty can be imposed merely due to misclassification of goods?

Order –

• The Division Bench of the Hon’ble High Court observed that the goods were accompanied by the relevant documents such as the invoice and e-way bill etc. and there is no dispute with regard to the value of the goods. The only dispute is with regard to classification of the goods.
• In the view of the Court, the imposed penalty in the present case is without any basis in law. Accordingly, the impugned order dated 08.05.2025 is quashed and set aside.