Harley Foods Products Pvt. Ltd. Vs State of U P And 3 Others (Allahabad High Court)
The Allahabad High Court in Harley Foods Products Pvt. Ltd. v. State of U.P. & Others addressed a writ petition challenging the seizure of goods and vehicle under Section 129 of the U.P. Goods and Services Tax (UPGST) Act, 2017, along with notices and a circular issued by the Commissioner of State Tax. The petitioner sought quashing of the seizure memo dated 25 March 2018, notices issued under Section 129(3), and Commissioner Circular No. 2899 dated 6 February 2018, claiming them to be ultra vires the provisions of the UPGST Act.
Background
Harley Foods, a GST-registered company based in Ahmedabad, supplied printed laminated rolls worth ₹7,84,564 and ₹4,37,588 through two invoices, charging Integrated GST at 18%. The goods were transported in truck DL-1GB-7369 from Ahmedabad to Meerut under Consignment Note No. A 89423 and accompanied by a Gujarat e-way bill dated 21 March 2018.
On 24 March 2018, near Baghpat, U.P., the truck was intercepted by the Mobile Squad, and a detention notice was issued in the driver’s name, alleging that e-way bill-01 had not been produced during verification, though other documents were in order. Subsequently, a seizure order was issued under Section 129(1) estimating the value of goods at ₹10,05,214, and a notice under Section 129(3) demanded a bank guarantee of ₹11,86,253 for release of the goods and vehicle. The alleged basis for seizure was the supposed intent to evade tax.
