Case Law Details
M/S Swastik Traders Thru Vs State of U.P (Allahabad High Court)
Facts in brief of the present case are that the petitioner is a registered dealer having GSTIN No.09ABYFS0479C1ZN under the relevant provisions of Goods and Services Tax Act, 2017 and deals in purchase and sale of Aluminium Section, Aluminium Sheets and their related hardware goods.
During the year 2017-18, one of the consignment of the sale made by the petitioner vide Tax Invoice No.GR-17-18/224 dated 16.12.2017 disclosing sale of Aluminium Section weighing 4013.16 Kgs. was being transported to the purchasing customer i.e. Maa Kripa Plywood & Hardware of Faizabad having GSTIN No.09AUXPM8745R1Z2 through Truck No.UP-70 DT/5611. The said truck was intercepted by Mobile Squad Officer vide Interception Memo No.13 dated 17.12.2017.
The Assistant Commissioner, State Tax, Mobile Squad Unit, Faizabad was not satisfied with the explanation made by the petitioner and goods as well as vehicle were seized under Section 129 (1) of the UPGST Act vide Seizure Memo No.14 dated 19.12.2017 merely on the ground that Tax Invoice discloses the sale of Aluminium Section only whereas Aluminium Section and Aluminium Composite Sheets were found in the vehicle in question.
Apart from seizing the goods and vehicle, Mobile Squad Officer issued a show cause notice being No.014 dated 19.12.2017 under Section 129 (3) of UPGST Act proposing to levy demand tax @ 18% on the total valuation of goods of Rs.6,66,665/- i.e. amounting to Rs.1,20,000/- and equivalent amount of penalty of Rs.1,20,000/- (cumulatively Rs.2,40,000/-) which was deposited by the petitioner by the Demand Draft.
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