Cavendish Industries Ltd. Vs State Of U.P. And 3 Others (Allahabad High Court)
In the case of Cavendish Industries Ltd. vs State of U.P. and Others, the Allahabad High Court quashed orders imposing a tax penalty on the petitioner. The case involved a consignment of tyres and tubes sent to Bajaj Auto Ltd., where a typographical error occurred in the E-way bill dates. The petitioner argued that the error was unintentional, with no intent to evade tax. The Additional Chief Standing Counsel for the State maintained that the proceedings were in accordance with the law. However, the court, referencing a similar case (M/s Hindustan Herbal Cosmetics v. State of U.P.), emphasized that mens rea, or intent to evade tax, is essential for imposing a penalty. The court found no such intent in this case and declared the penalty unlawful. Consequently, the orders dated February 22, 2020, and March 19, 2019, were set aside. The court directed the State to refund the tax and penalty paid by Cavendish Industries within four weeks, allowing the writ petition in favor of the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard learned counsel appearing on behalf of the petitioner and the learned Additional Chief Standing Counsel for the State.
