Case Law Details
Akbar Ali Transport Services Vs State of U.P. and Another (Allahabad High Court)
Introduction: In a recent legal battle before the Allahabad High Court, Akbar Ali Transport Services found itself challenging the seizure of its vehicle under Section 129 of the U.P. Goods and Services Tax Act, 2017 (‘GST Act’). The court, in its wisdom, delved into the circumstances surrounding the truck’s interception and subsequent seizure, providing crucial directions to safeguard the transporter’s rights.
Background: The dispute emanated from the interception of a TATA LPT 407 truck with registration number DLILAA-9970 on November 22, 2023. The petitioner, Akbar Ali Transport Services, was aggrieved by the lack of a show cause notice pertaining to the seizure of its vehicle, which was initiated under Section 129 of the GST Act. The court took cognizance of the fact that no specific notice was served on the petitioner before the truck was seized.
Ex-Parte Nature of Penalty Order: The order dated December 2023, referred to as MOV-09, imposed penalties on the transporter in an ex-parte manner. The court noted that this raised concerns about the violation of the petitioner’s right to be heard, a fundamental principle of natural justice. Akbar Ali Transport Services contended that it had not been afforded an opportunity to present its case before the penalty order was issued.
Judicial Observations: The Allahabad High Court recognized the importance of the truck as a valuable asset, essential for the transporter’s livelihood. The court emphasized that the lack of a hearing before the seizure adversely affected the petitioner’s civil rights. In its analysis, the court found that the penalty order did not establish any collusion between the transporter and the importing dealer, M/s Royal India Enterprises.
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