Case Law Details
Gopi Chand Batra Traders Vs State of U.P. And 2 Others (Allahabad High Court)
In the case of Gopi Chand Batra Traders vs. State of U.P. And 2 Others, the Allahabad High Court delivered a significant judgment regarding penalty imposition under Section 129 of the Uttar Pradesh Goods and Services Tax (GST) Act. This article provides a comprehensive analysis of the court’s decision and its implications.
The writ petition stemmed from a penalty order issued under Section 129(3) of the Uttar Pradesh GST Act, 2017, following a search and seizure conducted at the business premises. However, citing a precedent set by a coordinate bench in Mahavir Polyplast Pvt. Ltd. vs. State of U.P. and 2 Others, the court unequivocally stated that penalty proceedings under Section 129 cannot ensue from a godown search and seizure.
The court’s ruling elucidates the legal principle that penal consequences cannot arise solely from a search and seizure action at a godown, aligning with established judicial precedents. Consequently, the impugned penalty orders dated March 21, 2018, and August 31, 2018, were deemed unjustified and set aside by the court.
Furthermore, the Allahabad High Court directed the respondents to refund the tax and penalty amount deposited by the petitioner within four weeks from the date of the judgment, ensuring appropriate relief to the aggrieved party.
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