Mohini Traders Vs State of U.P. And 2 Others (Allahabad High Court)
In Mohini Traders Vs State of U.P. and 2 Others, the Allahabad High Court addressed writ petitions challenging the seizure of goods and the imposition of penalties under the GST Act. The petitioner, a GST-registered entity, had goods in transit from Aligarh, which were intercepted on 10th January 2020 at Jalalpur. While the petitioner produced an e-way bill shortly after interception, the goods were seized on 11th January 2020 and proceedings under Section 129(3) of the GST Act were initiated. After depositing tax and penalty, the goods were released, and the petitioner’s appeal against the seizure and penalty was rejected on 23rd February 2021.
The petitioner contended that there was no intent to evade tax and relied on the Allahabad High Court’s prior decision in Axpress Logistics India Pvt. Ltd. Vs Union of India & Others [Writ Tax No. 602/2018], arguing for relief.
The State, however, argued that the e-way bill was generated after the interception of goods, specifically at 1:19 p.m. on 10th January 2020, and relied on the Division Bench ruling in M/s Aysha Builders & Suppliers Vs State of U.P. & Another [Writ Tax No. 2415/2024], which held that delayed generation of e-way bills does not invalidate seizure proceedings.
