Jai Shree Traders Vs State Of U.P (Allahabad High Court)
In the case Jai Shree Traders Vs State Of U.P. before the Allahabad High Court, the petitioner, Jai Shree Traders, challenged orders issued by the Uttar Pradesh GST authorities under Section 129 of the Uttar Pradesh Goods and Services Tax Act, 2017, concerning the detention and release of goods. The petitioner argued that the orders were issued by a Proper Officer, not an Adjudicating Authority, which, according to their counsel, restricts the scope of appeal under Section 107 of the Act. The petitioner sought to quash the orders in Form GST MOV-09 and Form GST DRC-07, along with a specific GST circular that delegates adjudication powers. The court considered the petition under Article 226 of the Constitution, issuing directives for affidavits to be exchanged between the parties to further examine the matter. While awaiting a detailed hearing, the court allowed the petitioner to obtain release of the detained goods upon providing a bank guarantee in compliance with Rule 140(1) of the Uttar Pradesh GST Rules, 2017. The petitioner agreed to furnish security, facilitating the temporary release of the goods within a week of filing the guarantee. The court scheduled the matter for the next hearing on January 6, 2025, indicating that the issues raised about the delegation of powers and adjudicating authority may require further judicial review.
