U.S Metal Products Vs State of U P And 2 Others (Allahabad High Court)
In a significant ruling for businesses engaged in inter-state trade, the Allahabad High Court has quashed penalty orders against U.S. Metal Products, emphasizing that minor discrepancies in GST invoices or e-way bills should not lead to punitive action under Section 129 of the Central Goods and Services Tax (CGST) Act. The court’s decision, issued on [No Date Provided in Text], highlights the binding nature of departmental circulars on tax authorities.
The case centered on a consignment of electrical appliance and automotive castings being transported by U.S. Metal Products from Haridwar, Uttarakhand, to M.I. Road, Rajasthan. During its journey through Uttar Pradesh, the goods were intercepted by tax authorities. Upon verification of accompanying documents, the only discrepancy found was an incorrect invoice number in the e-way bill; it listed “3096” instead of the correct “3063.” No other issues regarding the quality, quantity, or description of the goods were raised.
Despite the minor nature of the error, a penalty order was issued. U.S. Metal Products challenged this order, first through an appeal to the Additional Commissioner, Grade-2 (Appeal), Commercial Tax, Muzaffar Nagar, and subsequently via a writ petition to the Allahabad High Court after the appeal was dismissed.
