Famus India Vs State of U.P. And 3 Others (Allahabad High Court)
GST Penalty proceedings are valid, in case of movement of Goods for job work, without valid challan-Allahabad High Court.
In recent case of Famus India Versus State Of U.P. Allahabad High Court held that Once various requirements as contemplated under the Rules related to delivery challans and same are not complied with. which demonstrates the contravention of provision of law and therefore, the proceeding under Section 129 cannot be invalidated.
The petitioner is a registered firm under the provision of GST act and engaged in the business of steel. The petitioner has placed the order for purchases of steel and accordingly sales invoice and e-way bill was prepared by the suppler with delivery details of recipient location.
However instead of recipient location delivery, goods are diverted to the job worker location and meanwhile after the diversion, the goods were intercepted by the Mobile Squad and on physical verification, it was found that place of unloading was mismatched, therefore, a show cause notice was issued in Form MOV 07. The goods were released and MOV 09 was issued vide order after imposing tax as well as the penalty. The petitioner has challenged the said order in appeal, which was dismissed.
