Order Date – 08 May 2024

Parties: M/S Gupta Mentha Oil Commission Agent Vs State Of Up And 2 Others

Facts – 

• The Petitioner, M/S Gupta Mentha Oil Commission Agent, was imposed with penalty under Section 129(3) subsequent to search of the business premises of the petitioner.

Issue –

• Whether penalty can be imposed subsequent to search of the business premises of the petitioner?

Order –

• The Single Bench of Hon'ble High Court observed that it has been categorically held by the coordinate Bench of this Court in Mahavir Polyplast Pvt. Ltd. Vs. State of U.P. and 2 others reported in (2022 U.P.T.C. [VOL.112] - 1514) that search and seizure of the godown cannot result in penalty proceedings under Section 129 of the Act.
• In light of the above, present proceedings are not justified, and accordingly, the impugned orders dated June 23, 2018 and May 7, 2019 are quashed and set aside.
• The Court directed the respondents to refund the amount of tax and penalty deposited by the petitioner within a period of four weeks from date.