Siddhi Vinayak Footwear Vs State of Uttar Pradesh And Another (Allahabad High Court)
The Allahabad High Court heard the writ petition filed by Siddhi Vinayak Footwear challenging orders issued by the Assistant Commissioner, State Tax, Gautam Buddha Nagar, Uttar Pradesh, regarding penalties under the U.P. Goods and Services Tax Act, 2017. The petitioner sought quashing of the impugned orders dated 18.10.2025 and 25.10.2025, contending that goods were accompanied by a tax invoice fully disclosing the owner’s details as a registered dealer. The grievance centered on the alleged absence of an e-way bill, which the petitioner argued could only attract a penalty under Section 129(1)(a) of the Act.
The petitioner claimed that the Adjudicating Authority had incorrectly computed the penalty under Section 129(1)(b) of the Act. Reliance was placed on the precedent of Halder Enterprises Vs. State of U.P. (2023), where a similar error in penalty computation was corrected, directing authorities to apply Section 129(1)(a).
Observing that the facts were similar and that no other dispute arose, the Court proceeded to decide the petition without requiring a counter affidavit. The impugned order dated 25.10.2025 was set aside, with a direction that the authorities determine the penalty under Section 129(1)(a) of the Act within three weeks. The Court further clarified that, upon depositing the penalty calculated on the value of goods as per the tax invoice, the goods should be released immediately.
