Detention of Goods Invalid When Documents Are in Order | HC

Case Details: Maa Tara Enterprises vs. State of U.P. - [2025] 177 taxmann.com 618 (Allahabad)

Judiciary and Counsel Details

• Piyush Agrawal, J.
• Aditya Pandey, for the Petitioner
• Ravi Shanker Pandey, learned ACSC for the Respondent

Facts of the Case

The petitioner-assessee approached the High Court challenging the detention of goods and conveyance during transit from West Bengal to Mughalsarai, UP. At the time of detention, the petitioner produced all requisite documents, including the e-tax invoice, builty, and e-way bill, and contended that there was no discrepancy in the quality or quantity of goods. The assessee submitted that detention, seizure, and imposition of penalty on the ground of alleged misclassification of goods were unwarranted since all documentation was in order and the goods conformed to the invoiced specifications. The legal issue arose as to whether goods could be detained or penalties imposed when all accompanying documents were in order. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that detention of the goods and conveyance was unjustified as all documents, including the e-tax invoice, e-way bill, and builty, were produced at the time of interception and there was no discrepancy regarding the quality or quantity of goods. It was observed that the penalty imposed solely on the basis of alleged misclassification of goods could not be sustained. Consequently, the impugned orders of detention, seizure, and penalty were quashed.

List of Cases Reviewed

• Tirupati Agro Commodities v. State of U.P. [2025] 176 taxmann.com 526 (Allahabad) (para 11)

List of Cases Referred to

• Tirupati Agro Commodities v. State of U.P. [2025] 176 taxmann.com 526 (Allahabad) (para 6)