Case Law Details
Mahalaxmi Traders Vs State of U.P. and 3 Others (Allahabad High Court)
In the recent case of Mahalaxmi Traders vs. State of U.P. and 3 Others, the Allahabad High Court delivered a significant judgment overturning an unjust seizure. The petitioner’s goods and vehicle, detained by respondent no. 4, were exonerated after a thorough examination of the facts.
The case revolved around the transportation of goods from Gorakhpur to M/s. R.K. Trading, Delhi, a registered dealer. The interception occurred on 03.04.2018 at Fatehgarh, with the objection that the goods lacked the necessary E-way bill. However, the petitioner, represented by Shri Shubham Agrawal, presented evidence that the E-way bill had been downloaded on 4.04.2018 at 2.06 p.m., well before the detention.
The court meticulously examined the relevant documents, including the Invoice, Goods receipt, and E-way Bills, submitted as Annexures. It was established that the petitioner had complied with the UPGST Act, downloading the E-way bill in a timely manner. In light of these facts, the court found no irregularity in the transaction, leading to the overturning of the seizure order and penalty notice dated 04.04.2018 under Sections 129(1) and 129(3) of the Act.
The Allahabad High Court, in allowing the writ petition, declared the seizure and penalty proceedings null and void. The goods and vehicle seized on 04.04.2018 were ordered to be released immediately in favor of Mahalaxmi Traders. This judgment serves as a precedent, emphasizing the importance of timely compliance with statutory requirements and ensuring justice in trade-related disputes. Businesses can now take solace in the legal system’s commitment to fairness and adherence to due process.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
Heard Shri Shubham Agrawal, learned counsel for the petitioner, Shri Anant Kumar Tiwari for respondent no. 2 and Shri C.B. Tripathi, learned Standing Counsel for respondent nos. 1, 3 to 4.
The goods were booked and transported from Gorakhpur to M/s. R.K. Trading, Delhi, which is a registered dealer. The goods proceeded on 03.04.2018 to be delivered at Delhi and in between, the same was intercepted/detained by respondent no. 4 at Fatehgarh. The objection of respondent no. 4 while detaining the goods was that the goods were not accompanied by the E-way bill.
Learned counsel for the petitioner has placed before us the E-way bill, which has been downloaded on 4.04.2018 at 2.06 p.m. under the CGST, before the detention of the vehicle. The goods were 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 04.04.2018 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 04.04.2018 be released in favour of the petitioner forthwith.
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