Nippon Tubes Limited Vs State of UP (Allahabad High Court)
The case involves Nippon Tubes Limited (the Petitioner), a registered manufacturer of M.S. Pipes, challenging the detention and seizure of goods by the GST authorities. The Allahabad High Court ultimately upheld the detention and seizure, ruling that the movement of goods for job work must be accompanied by specific compliance documents, even if the entire consignment is covered by a single master tax invoice.
Facts of the Case
1. Purchase: The Petitioner purchased four HR Coils from Steel Authority of India Limited (SAIL). The entire consignment was covered by a single Tax Invoice (dated 16.1.2019), which charged both CGST and SGST.
2. Internal Movement Plan: Upon receiving the four coils at the Ghaziabad Railway Sliding, the Petitioner planned to:
- Send two HR Coils directly to a job worker (M/s Jagdamba Cutter, Ghaziabad).
- Send the remaining two HR Coils to the Petitioner’s own manufacturing unit.3. Documentation for Movement: The Petitioner generated an e-way bill only for the two HR Coils destined for their own manufacturing unit. The vehicle carrying all four coils was instructed to first deliver two coils to the job worker and then proceed to the Petitioner’s unit with the remainder.
3. Interception and Seizure: The vehicle was intercepted after delivering the two coils to the job worker and while proceeding with the remaining two coils to the Petitioner’s unit. The authorities seized the goods on the ground that the driver failed to produce proper documentation for the movement of the two HR Coils destined for the job worker’s premises.
