Sachin Jain Vs State of U.P (Allahabad High Court)
The Allahabad High Court delivered its judgment in the case concerning Sachin Jain versus the State of Uttar Pradesh, challenging penalty orders under the U.P. Goods and Services Tax Act, 2017 (GST Act). The petitioner’s appeal was against the order dated 30.08.2024 of the Additional Commissioner (Appeals-2), Bareilly, which upheld the order dated 09.08.2024 of the Assistant Commissioner, Sector-I (Mobile Squad), Badaun. The original order imposed a penalty of Rs. 24,88,320/- under Section 129(3) of the GST Act for non-renewal of an e-way bill.
The petitioner contended that he had received a purchase order from M/s. Radial Natural Aeromatics Pvt. Ltd., Badaun, a registered dealer, for the supply of Mentha Oil. In compliance, he generated an e-invoice (No. FTP/187 dated 01.08.2024), an e-way bill (No. 461465527617), Form 9R under the Mandi Adhiniyam, and obtained a Mandi Gate Pass. The goods were dispatched from Barabanki on 01.08.2024 and reached the outskirts of Badaun on 02.08.2024. Due to traffic restrictions imposed during the ‘Kanwar Yatra’ festival in August 2024, heavy vehicles were prohibited from entering Badaun. Consequently, the truck carrying the goods remained outside the city limits from 02.08.2024 to 05.08.2024.
Once the traffic restrictions were eased, the truck entered Badaun but was intercepted by the Mobile Squad on 05.08.2024 at 11:49 AM. Upon inspection, the vehicle and documents were found to be in order. The only noted discrepancy was that the e-way bill generated on 01.08.2024 had expired on 03.08.2024 and had not been renewed. A show cause notice was issued, and the petitioner replied in detail, explaining the traffic restrictions and providing all relevant documents. Despite this, the authorities imposed the penalty. The petitioner’s appeal under Section 107 of the GST Act was dismissed, prompting the petition before the High Court.
