Consignor Would Be Deemed to Be Owner of Goods If the Invoice Mentions the Consignor’s Name and Same is Not Challenged | HC

Case Details: Ram Enterprises v. State of U.P. - [2024] 169 taxmann.com 180 (Allahabad)

Judiciary and Counsel Details

• Vipin Chandra Dixit & Shekhar B. Saraf, JJ.
• Aditya Pandey for the Petitioner.
• C.S.C. for the Respondent.

Facts of the Case

The petitioner was aggrieved by the demand of penalty order passed under Section 129(1)(b) of the Central Goods and Services Tax Act, 2017.The authorities have not challenged the invoice and/or e-way bill produced by the petitioner. Neither 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 relied on Circular No. 76/50/2018-GST, dated December 31, 2018, which 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.

High Court Held

The Allahabad High Court noted that the authorities were bound by the aforesaid circular dated 31-12-2018. Further, in the case of Halder Enterprises v. State of U.P. [2023] 157 taxmann.com 231, it was held that if the invoice mentions the name of the consignor, the consignor shall be deemed to be the owner.

This, the Court held that the impugned order was illegal and unjustified. The same was to be quashed and set aside with a direction to pass an order under section 129(1)(a) and thereafter release goods and vehicle upon payment of penalty in accordance with law.

List of Cases Reviewed

• Halder Enterprises v. State of U.P. [2023] 157 taxmann.com 231/[2024] 101 GST 313/2024 (80) G.S.T.L. 357/(2023) 13 Centax 144 (All.) (para 4) followed.