Singh Traders And 2 Others Vs State of U.P. and Another (Allahabad High Court)
The petitioners, who claimed to be the owners of goods detained by the authorities, contested the penalty levied at a higher rate of 100% of the goods’ value under Section 129(1)(b) of the Act. They sought the release of the goods against a reduced security amount, equal to twice the tax value, as provided under Section 129(1)(a) of the Act.
The court observed that while the petitioners did not dispute the levy of penalty, the quantum of the penalty was in question. The revenue authorities initially imposed a penalty at the higher rate, which the petitioners found unreasonable and harsh. The court, in light of the fact that the petitioners were the bonafide owners of the goods and no prejudice would be caused to the revenue by modifying the penalty, ruled in favor of the petitioners. The penalty was reduced to the amount stipulated under Section 129(1)(a), i.e., twice the tax amount imposed on the goods. The writ petition was disposed of with this modification, and the matter was concluded with a fair resolution.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Sri Aditya Pandey, learned counsel for the petitioners and Sri Ankur Agarwal, learned Standing Counsel for the State-respondents.
