E-way bill downloaded before seizure & tax was charged then seizure & penalty unjustified

Century Rayon Vs Union of India and 3 Others (Allahabad High Court)

Introduction: In a recent legal showdown, Centaury Rayon emerged victorious in a case against the Union of India and three others at the Allahabad High Court. The dispute centered around the seizure of goods and a subsequent penalty imposed on the petitioner, challenging the absence of an E-way bill during transportation.

Detailed Analysis: The case unfolded as goods were being transported from Murbad Road, Sahad & Kalyan, Sahad, District Thane, Maharashtra, to M/s. Centaury Rayon, Varanasi Depot. The interception occurred at Varanasi, with the goods being detained by respondent no. 4 due to the absence of an E-way bill-01. However, the petitioner presented evidence, including the E-way bill issued on 17.03.2018, under the CGST, and E-way bill-01 downloaded on 22.03.2018 before the detention.

The court scrutinized relevant documents, such as invoices, goods receipts, and E-way bills attached to the writ petition. It was established that the E-way bill under the UPGST Act had been acquired by the petitioner well in advance of the seizure, containing all necessary information. Consequently, the court found no irregularity in the transaction, leading to the overturning of the seizure order and penalty notice issued under Sections 129(1) and 129(3) of the Act.

Conclusion: With the court deeming the transaction free from irregularities, the writ petition was allowed, and the goods and vehicle seized on 22.03.2018 were ordered to be released in favor of Centaury Rayon. This legal victory highlights the importance of meticulous documentation in ensuring a smooth and lawful business transaction, ultimately resulting in a favorable outcome for the petitioner.

FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT

Heard Shri Aloke Kumar, learned counsel for the petitioner, Shri Anant Kumar Tiwari for respondent no. 1 and Shri C.B. Tripathi, learned Standing Counsel for respondent nos. 2 to 4.

The goods were being booked and transported from Murbad Road, Sahad & Kalyan, Sahad, District Thane, Maharashtra to M/s. Centaury Rayon, Varanasi Depot, CK 5/1, Thatheir Bazar, Varanasi, which is a registered dealer. The goods proceeded on 17.03.2018 to be delivered at Varanasi and in between the same was intercepted/detained by respondent no. 4 at Varanasi. The objection of respondent no. 4 while detaining the goods was that the goods were not accompanied by the E-way bill-01.

Learned counsel for the petitioner has placed before us the Eway bill, which has been issued on 17.03.2018 under the CGST as well as E-way bill-01, which has been downloaded on 22.03.2018 before the detention of the vehicle. The goods are ultimately seized under Section 129(1) of UPGST Act.

We have perused the relevant documents, namely, Invoice, Goods receipt, E-way Bills etc., which are enclosed as Annexures to the writ petition and found that the E-way bill under the UPGST Act has been downloaded by the petitioner, much before the detention and seizure of the goods and the vehicle, disclosing all the necessary informations.

In view of the aforesaid facts, we find no irregularity in the present transaction and, therefore, the seizure order as well as penalty notice dated 22.03.2018 issued under Sections 129(1) and 129 (3) of the Act as well as the consequential proceedings are hereby set aside.

Writ petition stands allowed.

The goods and vehicle seized on 22.03.2018 be released in favour of the petitioner forthwith.