Desk of CA. Praveen Sharma – 953 Series (CAPS) 

Allahabad High Court: Case of Gas Trade International

In a recent case before the Allahabad High Court, the petitioner, a GST-registered dealer dealing in petro-chemicals, transported Mixed Linear Alpha Olefins from Gujarat to Jharkhand with a valid invoice and e-Way Bill.

During transit, the tanker was intercepted by authorities and the goods were detained based on a laboratory report which described the product as lubricating oil instead of the declared goods. The petitioner argued that the sampling and testing were incorrect and that the wrong product had been tested. To secure release of the goods, the penalty was paid under protest.

The taxpayer later filed an appeal challenging the detention and penalty, stating that the laboratory report was unreliable and that there was no intention to evade GST. However, the appellate authority rejected the appeal, concluding that the goods transported were different from the declared goods.

The High Court examined the matter and observed that the authorities had not properly considered the objections raised regarding the test report and sampling process. As a result, the Court set aside the appellate order dated 06.06.2025.

The case has been remanded back to the appellate authority, directing it to reconsider the taxpayer’s arguments and pass a fresh reasoned order within two months.

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CAPS