Ganpati Enterprise vs. State Of U.P. And Others
(Allahabad High Court, Uttar Pradesh)

Case Law
Petitioner / Applicant
Ganpati Enterprise
Respondent
State Of U.P. And Others
Court
Allahabad High Court
State
Uttar Pradesh
Date
Mar 24, 2021
Order No.
WRIT TAX No. 80 of 2021
TR Citation
2021 (3) TR 4050
Related HSN Chapter/s
N/A
Related HSN Code
N/A

ORDER

Writ petition was entertained on 1.2.2021 and the following order was passed :

“1. Submission of learned counsel for the petitioner is that the goods were in transit through the State of U.P., the consignment having been booked at Assam for shipment to Delhi.

2. While passing through the State of U.P., the authorities have checked and found the e-way bill to be in order. Also, the goods subscribed to the description given in the tax invoice and the e-way bill. Reliance has also been placed on a recent circular of the Commissioner of Commercial Tax UP dated 19.01.2021 which again advises the State authorities not to examine anything beyond the e-way bill in such transactions.

3. Matter requires consideration.

4. Learned Standing Counsel has accepted notice on behalf of all respondents. He prays for and is granted four weeks time to file counter affidavit. Petitioner shall have two weeks thereafter to file rejoinder affidavit.

5. Issue notice to the respondents.

6. List thereafter.

7. In the meanwhile, it is seen that the petitioner has already deposited 10% of the amount of tax. Subject to further deposit of 20% of the tax within ten days from today and further security for the balance amount of tax in the shape other than cash or bank guarantee, treating the petitioner to be owner in terms of Section 129(1)(a) of Uttar Pradesh Goods & Services Tax Act, 2017, the goods may be released forthwith.”

Thereafter, Civil Misc. Correction Application No. 02 of 2021 was filed. It was allowed vide order dated 18.2.2021. It reads as under :

“Ref:- Civil Misc. Correction Application No.2 of 2021

1. Heard learned counsel for the parties.

2. The words ‘and vehicle’ be added after the word ‘goods’ appearing in the seventh line of the seventh paragraph of the order dated 01.02.2021.

3. Accordingly, the correction application is allowed.”

Presently Civil Misc. Clarification Application No. 3 of 2021 has been filed by the petitioner disclosing that despite the fact that the petitioner had earlier deposited a sum of ₹ 2,89,039/- comprising ₹ 2,75,275/- towards penalty and 10% of the tax amount being ₹ 13,764/- towards tax payable and despite the fact that the petitioner has further deposited a sum of ₹ 27,528/- under the order dated 1.2.2021, neither the petitioner’s goods nor the vehicle in question has been released. The respondents are insisting on furnishing of security in the shape of a immovable property for the balance amount of tax (70%). At the same time, it is seen that the petitioner had produced the e-way bill and the tax invoice at the time of detention itself. Thus the petitioner claims that he is the owner of the goods and therefore the penalty amount cannot exceed the amount of tax. As against that the petitioner has already deposited twice the amount of tax towards penalty.

In such circumstances, it does appear that the interest of revenue is secure, in-as-much as sufficient amount has been deposited towards the penalty and also 30% of the tax amount is deposited in hard cash. At this stage, learned counsel for the petitioner states that the petitioner is willing to deposit the balance 70% of the amount of tax in cash. Accordingly, the petitioner is permitted to deposit 70% of the demand of tax payable on the goods as a further condition to obtain the release of the vehicle and goods.

Civil Misc. Clarification Application No. 3 of 2021 is disposed of with the observation, subject to the petitioner depositing 70% of the amount of tax, the goods and the vehicle shall be released forthwith.

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