Case Law Details
Galaxy Enterprises Vs State of U.P. And 2 Others (Allahabad High Court)
In the recent case of Galaxy Enterprises vs. State of U.P., the Allahabad High Court addressed the issue of penalty imposition for discrepancies in goods transport. This article delves into the details of the case, the court’s observations, and the implications of the judgment.
Galaxy Enterprises, engaged in the manufacturing and sale of laminated papers, faced penalties due to discrepancies found during the transportation of goods from Muzaffarnagar to Rajasthan. The petitioner argued that a genuine tax invoice along with an e-way bill was produced before the detention or seizure order was passed. The court acknowledged this fact and emphasized that, as per Rule 31(1) of UP GST Rules, discrepancies rectified before the detention order should not lead to further proceedings.
The petitioner’s claim was supported by citing precedents, including the Division Bench judgments in M/s Axpress Logistics India Pvt. Ltd. vs. Union of India and M/s Bhumika Enterprises vs. State of UP. These judgments established the principle that if tax invoices and e-way bills are presented before the issuance of seizure or detention orders, subsequent proceedings are not justified.
The court found that the authorities below had failed to consider the timely production of corrected documents and, therefore, set aside the impugned orders. The matter was remanded to the first appellate authority for a fresh order in accordance with the law.
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