HC Rules Seizure Invalid If Updated E-Way Bill Shown

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  • Last Updated on 29 August, 2025

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HC ruling on e-way bill seizure

Case Details: Raj Rajeshwari Tecchno Fab (P.) Ltd. vs. Additional Commissioner Grade 2 Appeal 6 State Tax Kanpur - [2025] 177 taxmann.com 514 (Allahabad)

Judiciary and Counsel Details

  • Piyush Agrawal, J.
  • Aditya Pandey for the Petitioner

Facts of the Case

The petitioner, a registered dealer, was transporting goods when the vehicle was intercepted by the jurisdictional officer under CGST. Upon verification, it was found that the e-way bill accompanying the consignment had expired. A show cause notice was issued and penalty was demanded by way of order in Form MOV-09. The petitioner challenged the proceedings on the ground that the vehicle had met with an accident during transit and the driver, being unfamiliar with GST requirements, failed to timely communicate the incident, resulting in non-renewal of the e-way bill. It was submitted that a fresh and updated e-way bill was generated before passing of the seizure order, and there was no discrepancy with regard to the quality, quantity, or nature of goods. The appellate authority, however, upheld the order, leading the petitioner to approach the High Court.

High Court Held

The High Court held that once an updated e-way bill had been generated and produced prior to the passing of the seizure order, the detention and penalty proceedings could not be sustained in law. It observed that the record clearly established absence of any discrepancy in the consignment and that the only lapse was the expiry of the earlier e-way bill due to unforeseen circumstances. The Court emphasized that section 129 contemplates proceedings only where there is intent to evade tax, and in the present case no such finding was recorded by the jurisdictional authority. It accordingly quashed the impugned orders and allowed the petition.

List of Cases Reviewed

  • Ashoka P.U. Foam (India) Pvt. Ltd. v. State of UP [Neutral Citation No. 2024:AHC:11844]
  • Globe Panel Industrial India Pvt. Ltd. v. State of UP [2024] 159 taxmann.com 203/102 GST 851/83 GSTL 287 (Allahabad)
  • Sarvottam Rolling Mills Pvt. Ltd. v. State of UP [Neutral Citation NO. 2018:AHC:191778-DB] (Para 11), followed

List of Cases Referred to

  • Ashoka P.U. Foam (India) Pvt. Ltd. v. State of UP [Neutral Citation No. 2024:AHC:11844] (para 6)
  •  Globe Panel Industrial India Pvt. Ltd. v. State of UP [2024] 159 taxmann.com 203/102 GST 851/83 GSTL 287 (Allahabad) (para 6)
  •  Sarvottam Rolling Mills Pvt. Ltd. v. State of UP [Neutral Citation NO. 2018:AHC:191778-DB] (para 6)

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied