Maa Annapurna Traders Vs State of Uttar Pradesh (Allahabad High Court)
Summary: The Allahabad High Court partly allowed the writ petition filed by M/S Maa Annapurna Traders challenging the order dated 3.7.2026, demand and penalty order dated 12.6.2026, and detention order dated 6.6.2026 passed in proceedings under Section 129 of the CGST Act read with Section 20 of the IGST Act.
The petitioner submitted that it was a proprietorship concern which, in the normal course of business, had received an order from M/s Mahadev Traders, New Delhi for supply of watermelon seed. The goods were being transported from Sitamarhi, Bihar to New Delhi in Vehicle No. HR58 C 9615 along with a tax invoice and RR. The vehicle was intercepted by respondent no. 3 at Purvanchal Expressway Dhaba, Azamgarh on 31.5.2026. The driver’s statement was recorded and Form GST MOV-2 was issued on the ground that the e-way bill had not been tendered for the goods in movement.
According to the petitioner, during the interception proceedings the respondent authority made an inquiry from the petitioner’s assessing authority. Thereafter, by order dated 5.6.2026, the petitioner’s GST registration was suspended and information was given to the seizing authority that the petitioner was an unregistered dealer. On that premise, proceedings were initiated under Section 129(1)(b), rather than Section 129(1)(a). A show cause notice in GST DRC-01 was issued on 6.6.2026. The petitioner stated that it submitted a detailed reply, but the impugned order dated 12.6.2026 was passed without considering the reply and penalty was demanded for release of the goods and vehicle. The petitioner’s appeal against that order was dismissed by order dated 3.7.2026.
