Green India Vs State of U.P. and Another (Allahabad High Court)

In the case of Green India Vs State of U.P. and Another, the petitioner, a registered person and owner of the goods, approached the Allahabad High Court seeking the release of goods seized by the Uttar Pradesh Goods and Services Tax (UPGST) authorities. The petitioner claimed that the goods were intercepted while being transported through Uttar Pradesh, and a penalty had been imposed based on the argument that the petitioner, as the consignee, had prepared the delivery challan for the goods. The revenue authorities contended that the penalty was valid because of the petitioner’s role in the delivery process.The Court reviewed the relevant provisions of the UPGST Act, 2017, particularly Section 129(1)(a), which governs the release of goods in cases like these. The law allows the release of goods upon the payment of tax or providing security equal to 200% of the tax imposed on the goods. The Court noted that the goods could be released without prejudice to the petitioner’s right to contest the penalty, and no other party had claimed ownership of the goods. The petitioner was permitted to release the goods by providing the required security, while retaining the right to challenge the penalty order. The judgment referred to previous decisions on similar matters, emphasizing the proper application of Section 129, which governs the penalty and release of goods in cases of tax evasion or procedural violations.The petitioner’s right to appeal against the penalty order was preserved, and the Court allowed the release of the goods against the security deposit. This judgment aligns with earlier decisions that clarified the scope of penalty under the UPGST Act.