Order Date – 23 April 2024

Parties: M/S S.K. Traders Vs Additional Commissioner Grade-2 And Another

Facts –

• The Petitioner, M/S S.K. Traders, was imposed with penalty on the ground that the goods were under valuated.

Issue –

• Whether penalty can be imposed on under valuation of goods?

Order –

• The Single Bench of Hon’ble High Court observed that  by referring to the judgment of Kerala High Court in Hindustan Coca Cola Private Limited v. Assistant State Tax Officer reported in 2020 NTN (73)-58, this Court in the case of M/s Shambhu Saran Agarwal and Company v. Additional Commissioner, Grade-2 and others has held that imposition of penalty under Section 129 of the Uttar Pradesh Goods and Service Tax Act, 2017 on the ground that the goods are undervalued cannot be allowed.
• In such cases, it is for the officer intercepting the goods to detain them for the purpose of preparing the relevant papers for effective transmission to the judicial assessing officers and nothing beyond the same. The writ petition is allowed.