M/s GLOBE PANEL INDUSTRIES INDIA PVT. LTD. vs STATE OF U.P. AND OTHERS

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2024 Supreme(Online)(ALL) 3950

HIGH COURT OF ALLAHABAD
Shekhar B. Saraf, J
M/s GLOBE PANEL INDUSTRIES INDIA PVT. LTD. – Appellant
Versus
STATE OF U.P. AND OTHERS – Respondent

Advocates:
For the Appellants/Petitioners: Shubham Agarwal
For the Respondents: Rishi Kumar

Judgement Key Points

This is a writ petition under Article 226 challenging a penalty order dated January 16, 2023, passed under Section 129 by the Assistant Commissioner, State Tax Department. (!)
The vehicle was accompanied by two e-Invoices and two E-Way Bills, with goods matching the descriptions; the only issue was one expired E-Way Bill, supported by evidence of vehicle breakdown (mechanic letter and fast tag chart), and authorities failed to consider these documents; mere lack of documents does not justify penalty. (!)
Respondent argued that an expired E-Way Bill does not comply with rules, had expired ten days before detention, and no fresh E-Way Bill was generated despite awareness. (!)
Mens rea (intention to evade tax) is essential for imposing penalty under Section 129; no such intention found here, as goods matched documents, no disputes on consignor/consignee or goods description, and only a technical violation occurred without evidence of repeated use of E-Way Bill or evasion. (!)
Impugned orders dated January 16, 2023, and January 30, 2023, quashed and set aside. (!)
Respondents directed to refund the deposited tax and penalty amounts within four weeks. (!)
Writ petition allowed without order as to costs. (!)

Table of Content
1. writ petition filed under article 226 for gst penalty review. (Para 1)
2. petitioner argues that expired e-way bill alone is insufficient for penalty. (Para 2)
3. court emphasizes that mens rea is necessary for penalty imposition. (Para 3 , 4)
4. orders quashed, directing refund of amounts paid. (Para 5 , 6 , 7)

1. This is a writ petition under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the penalty order dated January 16, 2023 passed by the respondent No.3/Assistant Commissioner, State Tax Department, Sector 1, Mobile Squad, Deoria under Section 129 (3) of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinfater referred to as “the Act”) and the appellate order dated January 30, 2023 passed by the respondent No.2/Additional Commissioner, Grade-2 (Appeal)-I, State Tax, Judicial Division, Gorakhpur.

2. Learned counsel appearing on behalf of the petitioner submitted that the particular vehicle was accompanied by two e-Invoices and two E-Way Bills. He further submitted that the goods matched the description in the e- Invioices and the E-Way Bills. The only descrpency that was found at the time of detention was that one of the E

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2024 Supreme(Online)(ALL) 3950

HIGH COURT OF ALLAHABADShekhar B. Saraf, JM/s GLOBE PANEL INDUSTRIES INDIA PVT. LTD. – AppellantVersusSTATE OF U.P. AND OTHERS – Respondent

HIGH COURT OF ALLAHABAD
Shekhar B. Saraf, J
M/s GLOBE PANEL INDUSTRIES INDIA PVT. LTD. – Appellant
Versus
STATE OF U.P. AND OTHERS – Respondent