GST: Penalty cannot be imposed for absence of Transit Declaration Form- HC

M/S Ramdev Trading Company And Another Vs. State Of U.P. (Allahabad High Court)

Penalty and seizure is not sustainable for movement of goods without Transit Declaration Form (TDF) unless there exists malafide intention to evade taxes.

In absence of any allegation or evasion of tax being made against the petitioner at the stage of detention and seizure and even at the stage of issuance of notice of penalty, it is difficult to sustain the penalty.

Then, as to absence of Transit Declaration Form (TDF), though it amounted to a breach of the Rules, yet, in the entirety of the facts & circumstances of this case, as admitted to the revenue, it does appear that goods were being transported from Rajasthan to Assam. Also, since the goods had reached near the exit point in the State of U.P. and there is no allegation that the goods were being or had been unloaded inside the State of U.P., we are of the opinion that the goods were infact being transported from Rajasthan to Assam as disclosed in the Tax Invoice and other documents found accompanying the goods. The breach was purely technical.

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