GST UPDATE

Desk of CA. Praveen Sharma 

Series- 450

The writ petition has been filed challenging the order passed U/s  section 129(3)

1. ALLAHABAD HIGH COURT in the case of Khan Enterprises.

2. The petitioner challenged the Appeal order dated 19.8.2021, whereby the order dated 21.10.2020 has been confirmed. The counsel for the petitioner submitted that the goods were accompanying with all genuine documents and no discrepancy has been found in it; at the relevant time of purchases the parties were registered dealers, therefore goods cannot be seized; the purchaser has come forward, therefore, the enhancement of penalty cannot be made; the authority has no authority to issue supplementary notice after MOV 07 dated 30.9.2020. 

3. The court observed that the goods were accompanied with tax invoice, ewaybill and GR. The goods were detained on the ground that driver gave a statement that goods were to be unloaded at a place other than disclosed place in the companying documents. Once the authority have recorded the statement given by the truck driver on 30.9.2020 that the goods were to be unloaded at a disclosed place, then the subsequent statement of the truck driver alleging to unload the goods at other place cannot be recorded is not permissible in the eye of law. 

4. No provision has been referred empowering the respondents for issuing supplementary notice. The additional evidence has wrongly been accepted by the first appellate authority and before accepting the said additional evidence neither any notice was given to the petitioner nor any reason has been assigned, as provided in Rule 112. 

5. Once the owner of the goods has come forward the levy of penalty under section 129(1)(b) of the GST Act cannot be justified

Held that:- The Hon’ble High Court set aside the impugned order and remitted the matter back to the competent authority for passing fresh order within a period of two weeks.

Case cited/Ref:-

Anandeshwar Traders Versus State of U.P. — [2021] (Allahabad)

Riya Traders Versus State of U.P. — [2023] (Allahabad)

Margo Brush India Versus State of U.P. — [2023] (Allahabad)

Gobind Tobacco Manufacturing Co. Versus State of U.P. — [2022] (Allahabad)

S.K. Trading Co. Versus Additional Commissioner Grade 2 (Appeal) — [2023] (Allahabad)