2024(11)LCX0112

Allahabad High Court

Ram Enterprises

Versus

State Of Up

WRIT TAX No. - 2016 of 2024 decided on 21-11-2024

Court No

Court No. - 40

Case :- WRIT TAX No. - 2016 of 2024

Petitioner :- M/S Ram Enterprises
Respondent :- State Of Up And 2 Others
Counsel for Petitioner :- Aditya Pandey
Counsel for Respondent :- C.S.C.

Hon'ble Shekhar B. Saraf,J.
Hon'ble Vipin Chandra Dixit,J

1. Heard counsel appearing on behalf of the parties.

2. This is a writ petition under Article 226 of the Constitution of India wherein the writ petitioner is aggrieved by the demand of penalty order dated November 6, 2024 passed under Section 129(1)(b) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as 'the Act') read with Section 20 of the Integrated Goods and Services Tax Act.

3. From a perusal of the documents annexed with the writ petition, it appears that the authorities have not challenged the invoice and/or e-way bill produced by the petitioner nor have they questioned the fact of purchase of the areca nuts from a third party which was then being supplied by the petitioner to the consignee. The petitioner also relies on the Circular No.76/50/2018-GST, dated December 31, 2018 that states that if the invoice or any other specified document is accompanying the consignment of goods, then either the consignor or the consignee should be deemed to be the owner.

4. One may also rely on the Division Bench judgment of this Court in the case of H/S Halder Enterprises Vs. State of U.P. and others reported in 2024 (2) ADJ 660 (DB) wherein it has been held that the Department is bound by the aforesaid circular dated December 31, 2018 and if the invoice mentions the name of the consignor, the consignor shall be deemed to be the owner.

5. In light of the above, we are of the view that the order dated November 6, 2024 is illegal and unjustified, and accordingly, the same is quashed and set-aside with a direction upon the authorities to pass an order under Section 129(1)(a) and thereafter release the goods and vehicle upon payment of the penalty in accordance with law.

6. Accordingly, the writ petition is disposed of.

Order Date :- 21.11.2024

(Vipin Chandra Dixit, J.) (Shekhar B. Saraf, J.)