No Penalty on Goods in Transit with Tax Invoice & E-Way Bill for Subsequent Suspension of GST Registration

Lakhdatar Traders Vs State of Up And 2 Others (Allahabad High Court)

The Allahabad High Court, in Lakhdatar Traders Vs State of UP and 2 Others, addressed the imposition of a penalty under Section 129(1)(b) of the CGST Act, 2017. The petitioner challenged the penalty of ₹14,81,490, imposed on October 16, 2024, following the detention of goods in transit. The goods were intercepted on October 4, 2024, accompanied by a valid tax invoice and E-Way Bill. However, the authorities cited the suspension of the petitioner’s GST registration, effective October 3, 2024, as ground

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