Anchor Health And Beauty Care Pvt. Ltd. Vs State of U.P (Allahabad High Court)
In a significant ruling for businesses engaged in inter-branch transfers, the Allahabad High Court has set aside a penalty and tax demand imposed on Anchor Health And Beauty Care Pvt. Ltd. under Section 129(3) of the U.P. GST Act. The penalty, totaling INR 20,241/- each for tax and penalty, was levied solely due to a date mismatch between the e-way bill and the branch transfer invoice. The Court’s decision, delivered by a single bench, emphasizes that minor technical discrepancies, particularly in stock transfers where no tax evasion is evident, should not result in punitive action.
Background of the Case: Intercepted Stock Transfer
Anchor Health And Beauty Care Pvt. Ltd., a registered dealer under the GST Act, is a manufacturer and seller of Fast-Moving Consumer Goods (FMCG). The company has its Head Office in Mumbai and branch offices across various states, including Lucknow, Ghaziabad, and Varanasi in Uttar Pradesh.
The incident in question occurred on August 6, 2018, when a consignment of goods being transported by Trans-express Logistics India Pvt. Ltd. from Anchor’s Patna Branch (Bihar) to its Lucknow Branch (Uttar Pradesh) was intercepted by commercial tax authorities. A detention order (GST MOV 06) was issued under Section 129(1) of the U.P. GST Act, citing a “mismatch in the e-way bill and tax invoice.”
