Case Law Details
Sanjay Sales Agency Vs State of U.P. and Another (Allahabad High Court)
Introduction: The case of Sanjay Sales Agency vs State of U.P. revolves around a penalty imposed under Section 129(1)(b) of the Goods and Services Tax Act, 2017. The petitioner contests the penalty, asserting ownership of goods in transit and lack of intention to evade tax.
Detailed Analysis: The petitioner challenges a penalty order dated 08.09.2023, wherein a substantial penalty of Rs.37,59,792/- was levied under Section 129(1)(b) of the GST Act. The dispute arises from the Assistant Commissioner’s refusal to recognize the petitioner as the owner of the goods, despite the goods being accompanied by requisite documents such as tax invoices, e-way bills, and bilty issued in the petitioner’s name.
The petitioner argues that there was no intention to evade tax and asserts ownership of the goods. Citing the decision in Writ (Tax) No.178 of 2023 (M/s Sahil Traders Vs. State of U.P.), the petitioner contends that their case aligns with precedent, warranting relief.
On the opposing side, the revenue’s counsel maintains that the penalty was rightfully imposed, asserting that the petitioner was not the owner of the goods. However, it is acknowledged that intention to evade tax is a prerequisite for penalty under Section 129 of the Act. The presence of e-way bills, as documents of title, supports the petitioner’s claim of ownership.
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