HC Set Aside Order Since E-Way Bill Was Produced Before Passing of Seizure Order

Case Details: Bans Steel v. State of U.P. - [2024] 165 taxmann.com 569 (Allahabad)

Judiciary and Counsel Details

• Piyush Agrawal, J.
• Pranjal Shukla for the Petitioner.

Facts of the Case

The petitioner was a retail and wholesale distributor of iron and steel. During transportation of goods, the vehicle was intercepted by the GST department and goods were detained on the ground that no E-way bill was found with regard to one of the invoices. Thereafter, the department issued a show cause notice and passed the impugned order imposing tax liability along with penalty.

The petitioner challenged the order in appeal but the same was rejected. It filed writ petition and contended that the E-way bill was submitted before the passing of the seizure order. The department argued that there was a violation of the Act as E-way bill was not accompanying with the goods at the time of interception.

High Court Held

The Honorable High Court noted that the only ground for detention was that goods in question was not accompanying with proper documents and there was intention to avoid payment of tax. However, the E-way bill was produced before the seizure order could be passed and no discrepancy was pointed out in E-way bill by the department.

Therefore, it was held that the impugned order was to be set aside as the discrepancy was cured by producing E-way bill before passing of the seizure order.

List of Cases Reviewed

• Shri Surya Traders v. Union of India, Writ Tax No. 1146 of 2021,
• Havells India Ltd. v. State of UP, Writ Tax No. 1049 of 2019, distinguished.