GST Update

 Desk of CA. Praveen Sharma – 831 Series (CAPS) 

ALLAHABAD HIGH COURT IN THE CASE OF VRS Foods Ltd

Multiple writ petitions with identical issues were jointly heard; Writ Tax No. 1016 of 2022 treated as the lead case.

The dispute arose from an order of the Assistant Commissioner under Section 129(3) UPGST Act detaining a truck carrying battery scrap to Shiva Traders, Ghaziabad.

The vehicle was stopped on 28.02.2022 while returning from Balaji Dharmkanta weighbridge; at that time, no documents were with the driver.

Authorities imposed penalty of ?1,43,100, upheld in appeal with partial relief.

The petitioner argued that under Rule 138(14)(n), goods moved for weighment within 20 km need no e-way bill, and payment was later made through banking channels, proving bona fide intent.

State counsel contended that the law mandates at least a delivery challan, which was not produced during interception but filed later—thus breaching GST rules.

The Court observed that accepting petitioner’s plea would permit taxpayers to furnish documents belatedly after seizure, defeating Section 129’s objective.

Held: Since no prescribed document was available at the time of detention, the penalty was valid; writ petitions dismissed as lacking merit.