SL Yadav Cranes Pvt. Ltd. Vs State of U.P. and another (Allahabad High Court)
Allahabad High Court has quashed a demand of Rs. 59,00,000/- levied against SL Yadav Cranes Pvt. Ltd. under Section 129(3) of the Central Goods and Services Tax Act, 2017. The court’s decision, cited a minor typographical error in an e-way bill as the basis for setting aside the penalty.
The case stemmed from an incident on January 15, 2025, when a vehicle belonging to SL Yadav Cranes Pvt. Ltd. was intercepted by the Assistant Commissioner, Mobile Squad – I, State Tax, Ghaziabad. The company, engaged in renting machinery, was returning from a project site in Ghaziabad to Delhi after providing services to L&T Limited for a single day. The vehicle was accompanied by a delivery challan and an e-way bill.
During the interception, authorities noted a discrepancy in the vehicle number on the e-way bill, which incorrectly showed “HR-46C-4623” instead of the actual “HR-58C-4623.” Despite the driver producing the accompanying documents and a physical verification revealing no discrepancy in the goods themselves, an order of detention was issued under Section 129(1) of the Act, alleging that the goods were not covered by valid documents.
SL Yadav Cranes Pvt. Ltd. subsequently clarified that the incorrect vehicle number was due to an inadvertent typographical error and asserted ownership of the goods with supporting documentation. However, the authorities proceeded to impose a penalty of Rs. 59,00,000/- under Section 129(3) of the Act, concluding proceedings against the driver without, according to the petitioner, adequately considering the company’s reply.
