Sodhi Cargo Movers Pvt. Ltd. Vs State of Haryana and others (Punjab and Haryana High Court)
Punjab and Haryana High Court dismissed the writ petition challenging the appellate order dated 20.09.2022, which had upheld the levy of tax and penalty on goods detained during transit under the Haryana Goods and Services Tax Act, 2017. The petitioner, a registered GST transporter, sought quashing of the appellate order and release of goods, contending that invoices had subsequently been produced.
The Court noted that the goods vehicle was intercepted on 08.09.2021 during transit from Delhi to Agra. At the time of inspection, the driver produced only 11 invoices, 11 goods receipts (GRs), and 8 E-way bills. Of these, three invoices had no E-way bills, four E-way bills were invalid due to non-filling of Part-B, and four contained incorrect vehicle numbers. Physical verification revealed 17 items without any supporting documents and excess Polyester Fabric of 11,300 meters beyond the quantity mentioned in the invoice. Statutory forms under GST were issued, notices were served, and tax and penalty were confirmed under Section 129 after non-appearance of the transporter and non-payment of dues.
The Court observed that tax and penalty were not imposed on goods accompanied by the 11 invoices and GRs despite document defects, but were imposed only on goods found without any documents and on the excess Polyester Fabric. During appeal proceedings, the transporter produced photocopies of 18 invoices and GRs, but without E-way bills. The Appellate Authority rejected these documents, noting discrepancies in GR series numbers, absence of E-way bills, and the fact that the additional invoices covered only 8 goods, while invoices for 9 other goods found during inspection were never produced.
