Varun Beverages Limited Vs State of U.P. And 2 others (Allahabad High Court)
No penalty for transporting goods without e-way bill if e-way bill requirement was legally unenforceable during the relevant period
The Allahabad High Court addressed a challenge by Varun Beverages Limited against orders imposing a penalty for transporting goods without an e-way bill under the U.P. GST Act, 2017. The penalty was initially imposed by the Assistant Commissioner (Mobile Squad-2), Chandauli, on February 21, 2018, and later upheld by the Additional Commissioner (Appeal) on November 3, 2018. The petitioner argued that the requirement for an e-way bill was not enforceable between February 1, 2018, and March 31, 2018, as established by the Division Bench in M/s Godrej and Boyce Manufacturing Co. Ltd vs State of U.P.. As a result, neither the seizure of goods nor the penalty was justified. The petitioner’s appeal, however, had been dismissed due to a delay beyond the condonable period.
After reviewing the case, the High Court concurred with the Division Bench’s ruling in M/s Godrej and Boyce Manufacturing Co. Ltd and quashed both impugned orders. The court ruled that since the e-way bill requirement was legally unenforceable during the relevant period, the penalty imposed on Varun Beverages Limited was invalid. Consequently, the court directed that any amount deposited by the petitioner should be refunded within one month, following legal procedures.
