Transport of Bus Chassis for Renovation Not Grounds for GST Detention: Allahabad HC

Ankit Kamboj Vs State of U.P. and Another (Allahabad High Court)

In the case of Ankit Kamboj Vs State of U.P. and Another, the Allahabad High Court considered a writ petition challenging proceedings initiated under Section 129 of the Central Goods and Services Tax Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act, 2017. The Court observed that the order had not been passed within seven days of service of notice. The Court further noted that the vehicle involved was only a chassis being transported from one place to another for refurbishment and renovation and that there were no goods loaded in the vehicle during transportation. In view of these facts, the Court held that the proceedings initiated under Section 129 of the Act were invalid. Accordingly, the entire proceedings were quashed. The Court also directed the Department to return the bus to the petitioner within four days from the date of the order. The writ petition was allowed.

FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT

1. Heard Sri Aditya Pandey, learned counsel for the petitioner and Sri Ankur Agarwal, learned Standing Counsel for the State.

2. Present petition under Article 226 of the Constitution of India has been filed by the petitioner being aggrieved by the proceedings initiated under Section 129 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “Act”) read with Section 20 of the Integrated Goods and Services Tax Act, 2017.

3. On bare perusal of the record and the submissions made by learned counsel for both the parties, it appears that the order was not passed within seven days of service of notice. It further appears that it was a chassis that was being transported from one place to another for refurbishment and renovation. There were no goods in the vehicle and the vehicle was being driven from one place to another.

4. In light of the above, the entire proceedings initiated under Section 129 of the Act are invalid. The same are quashed.

5. The Department to return the bus to the petitioner within four days from date.

6. The writ petition is allowed in above terms.