Osr Creation Vs State of U.P. And 2 Others (Allahabad High Court)
Allahabad High Court ruled in favor of Osr Creation, overturning the penalty imposed by state tax authorities for alleged non-compliance with e-way bill regulations. The case arose when Osr Creation transported goods to Noida on November 21, 2022, but failed to generate the e-way bill due to technical issues. The company instructed the transporter not to enter Uttar Pradesh without it, and the bill was successfully generated before interception. However, authorities detained the goods and imposed a penalty under Section 129 of the GST Act, treating the late production of the e-way bill as an afterthought. The appellate authority upheld the penalty, prompting the company to challenge the decision in court.
The court found no evidence that Osr Creation intended to evade tax, as the e-way bill was presented before the seizure order. It cited past rulings emphasizing that if required documents are provided before seizure and no discrepancies are found, penalties should not be imposed. The judgment distinguished the case from precedents cited by the state, where no documents were produced before seizure. Concluding that the penalty was unjustified, the court quashed the orders and directed a refund of any deposited amount.
