In Writ Tax No. 854 of 2023 -ALL HC- E-way bills prove ownership of goods, Revenue's conclusion that the petitioner was not owner of the goods patently erroneous: Allahabad High Court
Chief Justice Pritinker Diwaker & Justice Ashutosh Srivastava [24-07-2023]

Read Order: M/s. Bhawani Traders v. State of U.P. and Another

Chahat Varma

New Delhi, August 9, 2023: In a recent decision, the Allahabad High Court has ruled in favour of M/s. Bhawani Traders (petitioner). The court held that the E-way Bills that accompanied the goods, being the documents of title to the goods, made the Revenue's conclusion that the petitioner was not the owner of the goods patently erroneous.

The petitioner in this case was dissatisfied with the penalty order dated 17.06.2023 issued by the Assistant Commissioner (In-charge) Mathura under Section 129(1) (b) of the Goods and Services Tax Act, 2017 (GST Act). The penalty imposed amounted to Rs. 48,53,940 and was based on the Revenue's refusal to acknowledge the petitioner as the owner of the goods.

The bench of Chief Justice Pritinker Diwaker and Justice Ashutosh Srivastava held that for the imposition of a penalty under Section 129 of the GST Act, the Revenue must establish an intention to evade tax as a prerequisite. In this case, the bench observed that the Revenue could not dispute this fact.

The bench, after considering the arguments and evidence, decided to set aside the penalty order under Section 129(1) (b) of the GST Act. As a result, the writ petition filed by the petitioner was allowed. The bench directed the Assistant Commissioner (In-charge) Mathura to pass a fresh order, treating the petitioner as eligible to avail the benefit of Section 129(1) (a) of the Act.