GST Update

 Desk of CA. Praveen Sharma – 868 Series (CAPS) 

Allahabad High Court in the case of Deepam Packaging and Food Private Ltd

The petitioner challenged the MOV-06 order dated 04.02.2023 and the appellate order dated 31.05.2023 passed under Section 129(3) of the CGST Act.

 The manufacturer had dispatched goods from Kanpur to Varanasi with a proper invoice and an e-way bill valid up to 03.02.2023.

 Goods were intercepted on 04.02.2023 on allegations of reusing documents after expiry of the e-way bill, though the driver confirmed genuine movement.

 The petitioner explained that the vehicle broke down and resumed travel after repairs, yet the department seized the goods without verifying facts.

 No enquiry was conducted with the buyer or toll plaza authorities to establish document misuse.

 Relying on the Anandeshwar Traders ruling, the Court observed that such allegations require proper investigation, which was absent.

 The High Court quashed both orders and directed refund of deposited amounts as per law.

LINK:CA. Praveen Sharma on Linkedin