Bajrang Enterprises Vs Union of India And 3 Others (Allahabad High Court)
A consignment of 20,000 kg of mustard seeds belonging to Madhya Pradesh dealer Bajrang Enterprises was detained by GST authorities in Uttar Pradesh on October 24, 2018. The detention, under Section 129(1) of the Central Goods and Service Tax Act, 2017, was followed by a Section 129(3) notice demanding 50% penalty each under CGST and UP GST for the release of goods.
The petitioner’s counsel, Sri Aloke Kumar, stated that the applicable GST on the item is 5%, amounting to Rs. 28,000. An E-way bill, initially unavailable, was subsequently downloaded on October 24, 2018, valid until November 2, 2018.
The Allahabad High Court, without assessing the detention order’s merits, directed the release of the goods and vehicle. This release is contingent on the deposit of the proposed tax amount of Rs. 28,000 and a penalty of Rs. 25,000. The petitioner will also be permitted to download a new E-way bill, allowing the goods to transit through Uttar Pradesh by November 5, 2018. The court clarified that its order does not reflect an opinion on the detention’s legality or the proposed tax/penalty, with the deposited amount subject to the final outcome of subsequent proceedings.
