M/S Ganpati Battery Traders vs. State Of U.P. And 2 Others
Held
The Court held that both the adjudicating and appellate authorities failed to provide valid reasoning for disregarding the petitioner's trade practice of selling batteries per piece. The orders imposing penalty and rejecting the appeal were set aside.
Facts
The petitioner's truck carrying old, damaged batteries sold on a per-piece basis was intercepted and detained. A penalty was imposed, which the petitioner paid, and the goods were released. The appeal against the penalty order was rejected.
Key Issues
Whether the authorities erred in imposing penalty for selling old, damaged batteries on a per-piece basis instead of by weight, without proper reasoning. Whether Rule 46 of CGST Rules, 2017 supports the State's contention.
Sections Cited
Section 20, Section 68(3), Section 129(1)(a), Section 129(1)(b), Section 129(3), Rule 46
AI-generated summary — verify with the full judgment below
Court No. - 10 Case :- WRIT TAX No. - 1138 of 2022 Petitioner :- M/S Ganpati Battery Traders Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Anil Prakash Mathur Counsel for Respondent :- C.S.C.
Hon'ble Rohit Ranjan Agarwal,J.
Heard Sri Anil Prakash Mathur, learned counsel for the petitioner and Sri Rishi Kumar, learned Standing Counsel for the State.
This writ petition has been filed challenging the order dated 30.4.2022 passed by the Additional Commissioner, Grade-2 (Appeal) Second, Commercial Tax Department, Kanpur.
The petitioner is engaged in the business of sale and purchase of old batteries. On 18.2.2022, 793 pieces of large damaged battery and 7538 pieces of small damaged battery were sold to M/s Shanti Prakash Power Private Limited at Gwalior through tax invoice. The goods were being sent through Truck No.UP79-T-5059, and were enroute to its destination, when it was intercepted by Mobile Squad near Unnao on 23.2.2022.
The truck was detained for verification under Section 20 of the Integrated Goods and Service Tax Act, 2017 read with Section 68(3) of the Central Goods and Service Tax Act, 2017. The physical verification and inspection was conducted on 26.2
The judgment continues below.
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