The Allahabad High Court while quashing the wrongful seizure of a consignment by GST authorities held that the State Authorities cannot harass the trading community.
The petitioner, S/S Shri Surya Traders is a registered dealer and engaged in the business of selling Ankle (Sweet Supari) and Varanasi Ashik (Betel Nut Product). In the normal course of business, 90 bags of Betel Nut Product were sold to two different registered dealers by issuing two tax invoices, were being transported to its destination and the same were along with tax invoices & e-way bills. The said goods were intercepted by the proper officer at Varanasi. On the physical verification, three bags of Betel Nut Product were found without tax invoice and a show cause notice was issued to the petitioner and in reply to the show cause notice, the petitioner has submitted tax invoice issued in the name of M/s Lal Ji Pan Bhandar, Tikona Park, Nawabganj, Gonda.
He further submitted that the said tax invoice was handed over to the transporter but by mistake he left it behind. He further submits that since the value of the goods was less than Rs. 50,000/-, therefore, e-way bill was not generated. He further submits that so far as the consignment of 87 bags sold to M/s Karuna Nidhan Agency are completed in all respect, the said goods should have not been seized to that extent. If any, discrepancy can be attributed it should be with regard to three bags only. He prays that the goods be released without security.
The single bench of Justice Piyush Agrawal held that the State Government have tried to create an atmosphere for free flow of trade and commerce so that a good business environment can be developed in the State of Uttar Pradesh which can be used for development purpose but the State Authorities in their whims and fencing are bend upon to harass the trading community of the State. The present case is a glaring example of the mischievousness of the State Authorities which needs to be checked at the end of the State Government immediately.
“The writ petition is allowed with a cost of Rs. 20,000/- payable to the petitioner. The cost shall be paid within a period of one month from today. The respondents are at liberty to recover the said cost from the erring officer,” the court said.
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