Vishva Electrotech Ltd. Vs State of U.P. And 2 Others (Allahabad High Court)
Allahabad High Court addressed a dispute in Vishva Electrotech Ltd. vs. State of U.P. and Others concerning the detention of goods during transit under the GST framework. The petitioner, a registered GST entity, transported goods from its Orissa branch to Kanpur, Uttar Pradesh. The shipment, accompanied by valid e-invoices and an e-way bill, was intercepted due to an error in the e-way bill where the delivery location was incorrectly mentioned as Ghaziabad instead of Kanpur. Despite the petitioner’s submission of supporting documents and an appeal, authorities passed orders treating the truck driver as the owner of the goods, contravening GST provisions and relevant circulars.
The Court highlighted the binding nature of the GST Circular dated December 31, 2018, which specifies that consignors or consignees should be treated as owners if valid invoices accompany the goods. It ruled that the petitioner, being both consignor and consignee in this stock transfer, was the rightful owner under GST law. The authorities were directed to recognize the petitioner as the owner and comply with the circular. Relying on precedents like M/s Riya Traders vs. State of U.P., the Court quashed the impugned orders, reinforcing adherence to established GST regulations.
