HC Set Aside Penalty Order Issued Merely on Ground That Vehicle Was Not on Its Normal Route

Case Details: Vishal Steel Supplier v. State of U.P. - [2024] 164 taxmann.com 609 (Allahabad)

Judiciary and Counsel Details

• Piyush Agrawal, J.
• Praveen Kumar for the Petitioner.
• C.S.C. for the Respondent.

Facts of the Case

The petitioner was engaged in the business of trading of steel goods. The goods were being transported from Muzaffarnagar to Ghaziabad and intercepted at Hapur by the department. The goods were detained on the pretext that it was not on its normal route and the driver of the truck was having mobile number of a dealer of Hapur. Therefore, an inference was drawn by authorities that goods would be unloaded at Hapur without proper document. The petitioner filed writ petition and contended that goods were detained only on the basis of surmises and conjunctures.

High Court Held

The Honorable High Court noted that no discrepancy had been pointed out at time of detention or seizure of goods with regard to quality or quantity of goods. Moreover, the Court observed that the authorities had also not recorded any finding with regard to mens rea to avoid payment of tax. It was also not case of the department that under GST Act, dealer was required to disclose specific route of its journey for movement of goods. Therefore, the Court held that the impugned order was to be set aside and any amount deposited by the petitioner in the present proceeding shall be refunded.

List of Cases Reviewed

• Om Prakash Kuldeep Kumar v. Additional Commissioner (2024 UPTC Vol. 116 -19), relied on.