Sen Traders Vs State of U.P. And Another (Allahabad High Court)
The Allahabad High Court considered a writ petition filed by Sen Traders challenging proceedings initiated under Section 129 of the U.P. Goods and Services Tax Act, 2017 read with Section 20 of the IGST Act, including a penalty order dated 18.10.2025, detention orders in Form GST MOV-06 dated 10.10.2025, and consequential notices in Forms GST DRC-01 and GST MOV-07. The petitioner sought quashing of these orders and notices and requested directions for the immediate release of goods and vehicles without demanding security, as well as to restrain the authorities from taking coercive action.
The petitioner submitted that the goods in question were accompanied by a valid e-way bill and tax invoice, which disclosed the full particulars of the owner, a registered dealer. Consequently, any infringement could only have warranted a penalty under Section 129(1)(a) of the Act. However, the Adjudicating Authority had erroneously computed the penalty under Section 129(1)(b). The petitioner relied on the precedent of Halder Enterprises vs. State of U.P. (2023), where a similar error was rectified, and authorities were directed to apply Section 129(1)(a) within a defined period.
The Court noted that, given the similarity of facts and absence of any other dispute, there was no need to keep the petition pending or require a counter affidavit. Accordingly, the impugned penalty order dated 18.10.2025 was set aside, with directions for the authorities to determine the quantum of penalty strictly in accordance with Section 129(1)(a) of the Act within three weeks.
