Venkateshwara Traders Vs Union of India (Rajasthan High Court)
The Rajasthan High Court disposed of a batch of writ petitions by a common order, taking facts from B. Civil Writ Petition No. 12413/2025. The petitioner, a proprietorship concern based in Karnataka, is engaged in trading arecanut and makes taxable supplies in the State of Karnataka. The dispute arose from an order dated 08.07.2025 passed under Section 130 of the Central Goods and Services Tax Act, 2017 (CGST Act), whereby penalty and fine aggregating to Rs. 53,33,125/- were imposed.
The petitioner had received a purchase order from M/s. Aryan Traders, a registered dealer based in Delhi, for supply of non-edible arecanuts. A tax invoice (No. 51) was issued for 250 bags weighing 17,500 kg, valued at Rs. 18,20,000/-, with IGST of Rs. 91,000/- levied at 5%. The goods were transported in Vehicle No. RJ14-GP-7783, driven by Manoj Kumar.
The impugned order dated 08.07.2025 confirmed the proposal in MOV-10 and imposed a penalty of Rs. 2,31,875/-, fine of Rs. 46,37,500/-, along with an additional penalty of Rs. 2,31,875/- under Section 130, and a fine in lieu of confiscation of conveyance of an equal amount. The petitioner challenged the invocation of Section 130 and sought release of goods and setting aside of the order passed in Form GST MOV-11.
