Meghdoot Enterprises Vs Additional Commissioner (Appeal) (Allahabad High Court)
Allahabad High Court Quashes GST Penalty Because No Intention to Evade Tax Was Found; GST Penalty Set Aside as Goods Were Unloaded at Assessee’s Own Godown, Not to Evade Tax; Penalty Under Section 129 Invalid Because Revenue Failed to Prove Tax Evasion Intent; Allahabad High Court Sets Aside GST Penalty Because Documentary Records Were Undisputed; Mere Change in Unloading Address Not Enough for GST Penalty, Holds Allahabad High Court.
The writ petition was filed under Article 226 of the Constitution challenging the appellate order dated 28 July 2022, which affirmed a penalty imposed under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017.
The petitioner contended that the sole basis for the penalty was that the goods had been unloaded at a location not mentioned in the registration certificate. The petitioner submitted that the godown where the goods were unloaded belonged to it and had been registered as its place of business under the erstwhile Value Added Tax regime. It was further argued that there was no discrepancy in the tax invoices or e-way bill and no mismatch between the goods described in the documents and the goods transported. The petitioner relied on a previous judgment of the Court in M/s Hindustan Herbal Cosmetics v. State of U.P. and Others, contending that penalty under Section 129 could not be imposed in the absence of any intention to evade tax.
