Aasar Scrap Traders Vs State of U.P. And 2 Others (Allahabad High Court)
The Allahabad High Court, in the case of Aasar Scrap Traders Vs State of U.P. And 2 Others, dismissed a writ petition challenging the detention and imposition of tax and penalty on a consignment under the GST Act. The Court upheld the orders of the appellate and assessing authorities, affirming the principle that the driver’s categorical statement recorded at the time of interception holds greater legal sanctity than subsequent explanations or documentation provided by the assessee.
Background of the Detention
The petitioner, Aasar Scrap Traders, is a proprietorship firm with GSTIN, dealing in scrap. The case involved the movement of scrap goods in a truck (UP 81 W 7624) on August 17, 2022. The petitioner claimed the goods were initially purchased from M/s Jai Durga Scrape Traders, Aligarh, and then re-loaded for onward shipment to a purchaser firm, SSC Enterprises, Meerut Road, Muzaffar Nagar, supported by a second tax invoice and e-way bill.
The vehicle was intercepted by the Mobile Squad of the Commercial Tax Department near Basti. Following the interception, the statement of the driver was immediately recorded in MOV – 01, and a physical verification report was prepared in GST MOV – 04. Based on the driver’s statement, a detention order was passed, leading to the imposition of tax and penalty by the Assistant Commissioner on August 18, 2022. The petitioner’s appeal against this order was subsequently dismissed by the Additional Commissioner.
