Gas Trade International Vs State Of Up And 2 Others (Allahabad High Court)
The Allahabad High Court examined a writ petition challenging orders passed under the U.P. GST Act relating to detention of goods, imposition of penalty, and dismissal of appeal. The petitioner, a registered dealer engaged in trading petrochemical products, had transported Mixed Linear Alpha Olefins pursuant to a valid invoice and e-way bill. During transit, the consignment was intercepted, physically verified, and detained under Section 129(1). A show cause notice was issued along with a laboratory test report which described the sample as “lubricating oil” and alleged that the goods were adulterated and not as declared.
The petitioner contested the findings, stating that the goods were correctly declared and that the lab report was unreliable, as the sample description did not match the actual product. It was argued that the test was conducted on an incorrect sample and that conclusions were based on conjecture. The petitioner further submitted that there was no discrepancy in quantity, proper documentation was maintained, and there was no intent to evade tax. Despite these objections, penalty was imposed, and the goods were released upon payment under protest.
The petitioner filed an appeal raising detailed objections regarding the accuracy of the lab report and the legality of the detention and penalty. However, the appellate authority dismissed the appeal without addressing these specific contentions. Before the High Court, it was argued that both the original and appellate authorities failed to consider material submissions, particularly regarding the discrepancy in the lab report and the absence of mens rea.
