Century Rayon Vs Union of India
Date: April 10, 2021
Subject Matter
No penalty where E-way bill has been downloaded by the taxpayer, much before the detention and seizure of the goods and the vehicle, disclosing all the necessary informations.
Summary
In this case, Centaury Rayon successfully challenged the seizure of goods and the penalty imposed on them for the absence of an E-way bill during the transportation of goods. The Allahabad High Court ruled in favor of Centaury Rayon after scrutinizing the evidence presented, including E-way bills and relevant documents, and found no irregularity in the transaction. As a result, the seizure order and penalty notice issued under Sections 129(1) and 129(3) of the UPGST Act were overturned, and the goods and vehicle were ordered to be released in favor of Centaury Rayon.
Heard Shri Aloke Kumar, learned counsel for the petitioner, Shri Anant Kumar Tiwari for respondent no. 1 and Shri C.B. Tripathi, learned Standing Counsel for respondent nos. 2 to 4.
The goods were being booked and transported from Murbad Road, Sahad & Kalyan, Sahad, District Thane, Maharashtra to M/s. Centaury Rayon, Varanasi Depot, CK 5/1, Thatheir Bazar, Varanasi, which is a registered dealer. The goods proceeded on 17.03.2018 to be delivered at Varanasi and in between the same was intercepted/detained by respondent no. 4 at Varanasi. The objection of respondent no. 4 while detaining the goods was that the goods were not accompanied by the E-way bill-01.
Learned counsel for the petitioner has placed before us the Eway bill, which has been issued on 17.03.2018 under the CGST as well as E-way bill-01, which has been downloaded on 22.03.2018 before the detention of the vehicle. The goods are ultimately seized under Section 129(1) of UPGST Act.
We have perused the relevant documents, namely, Invoice, Goods receipt, E-way Bills etc., which are enclosed as Annexures to the writ petition and found that the E-way bill under the UPGST Act has been downloaded by the petitioner, much before the detention and seizure of the goods and the vehicle, disclosing all the necessary informations.
In view of the aforesaid facts, we find no irregularity in the present transaction and, therefore, the seizure order as well as penalty notice dated 22.03.2018 issued under Sections 129(1) and 129 (3) of the Act as well as the consequential proceedings are hereby set aside.
Writ petition stands allowed.
The goods and vehicle seized on 22.03.2018 be released in favour of the petitioner forthwith.