Beena Traders And 6 Others Vs State of U.P. and Another (Allahabad High Court)
The Allahabad High Court examined a writ petition challenging the detention of goods and a vehicle, along with subsequent proceedings initiated under Section 129 of the CGST Act read with the IGST Act. The petitioners confined their challenge to the legality of proceedings under Section 129. The central issue was whether detained goods should be released under Section 129(1)(a) based on the value declared in the invoice, or under Section 129(1)(b) as applied by the authorities.
The petitioners argued that they were the owners of the goods and, therefore, release should be governed by Section 129(1)(a), which requires calculation based on invoice value. They relied on prior decisions of the Court holding that valuation cannot be enhanced under Section 129(1)(b) and that penalty must be computed on the basis of invoice or e-way bill value. The authorities, however, justified their action as legally valid.
The Court, upon examining the record and earlier judgments, found no reason to depart from the established legal position. It held that the goods must be released under Section 129(1)(a) on the basis of the invoice value. Consequently, the order dated August 9, 2025, applying Section 129(1)(b), was quashed.
