Raghuveer Ispat Private Limited Vs State of U.P. (Allahabad High Court)
In the case of Raghuveer Ispat Private Limited vs State of U.P., the Allahabad High Court quashed penalty orders imposed under the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner challenged the penalty for an expired e-way bill, arguing that the only discrepancy was the e-way bill’s expiration due to vehicle breakdown, with no intent to evade taxes. The court acknowledged that the goods were accompanied by proper documents matching the invoice, and noted that no evidence suggested repeated misuse of the e-way bill or tax evasion. The court referenced its previous rulings, emphasizing that a technical violation without intent to evade tax should not lead to penalties under Section 129(3) of the Act. Consequently, the court annulled the penalty and appeal orders, directing the state to refund the tax and penalty amount within four weeks. The writ petition was allowed, with no costs ordered.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Mr. Vishwjit, learned counsel appearing on behalf of the petitioner and Sri Ravi Shankar Pandey, learned Additional Chief Standing Counsel appearing on behalf of the State.
2. This is a petition under Article 226 of the Constitution of India, wherein the writ petitioner is aggrieved by penalty order dated December 9, 2017 passed under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the ‘Act’) and the order in appeal dated May 8, 2019 passed under Section 107 of the Act by the Additional Commissioner Grade-2 (Appeal), State Tax, Kanpur.
