M/S Shakti Enterprises Thru. Partner Mr. Prabhakar Kumar Jha vs. State Of U.P. Thru. Secy. Institutional Finance U.P. Lko. And Another
Held
The Court held that the authorities erred in calculating the penalty under Section 129(1)(b) and that the goods should be released based on the invoice valuation under Section 129(1)(a). The order dated November 14, 2025, was quashed.
Facts
The petitioner's goods and vehicle were detained, and orders were passed under Section 129 of the CGST Act. The petitioner, as the owner of the goods, contended that release should be under Section 129(1)(a), not 129(1)(b) as calculated by the authorities.
Key Issues
Whether the detention and subsequent penalty calculation under Section 129 of the CGST Act were in accordance with the law, specifically regarding the applicable sub-section for release based on ownership and invoice valuation.
Sections Cited
Section 129, Section 129(1)(a), Section 129(1)(b)
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1489 of 2025 Court No. - 3 HON'BLE SHEKHAR B. SARAF, J. HON'BLE MANJIVE SHUKLA, J.
The present writ petition, filed under Article 226 of the Constitution of India, assails the actions of the respondent authorities with regard to detention of the goods and vehicle of the petitioner as well as subsequent orders passed under Section 129 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the "CGST Act") read with Section 20 of Integrated Goods and Services Tax Act, 2017. 2. At the outset, counsel appearing on behalf of the petitioner has restricted the prayers made in the writ petition to the proceeding initiated under Section 129 of the CGST Act.
The main issue in this writ petition is whether the goods may be released by the authorities under Section 129(1)(a) or 129(1)(b) of the CGST Act read with IGST Act.
The main contention of the learned counsel for the petitioner is that the petitioner is the owner of the goods and, therefore, goods are to be released as per Section 129(1)(a) of CGST Act read with IGST Act while the authorities have made the calculation under Section 129
The judgment continues below.
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