M/S Vikram Solar PVT. LTD. vs. Union Of INDIA Thru Secy. And 3 Others
Original PDF →Facts
The petitioner, M/s Vikram Solar Pvt. Ltd., filed a writ petition challenging the seizure order dated 16.12.2017 and a consequential notice dated 16.12.2017, both passed under the U.P. GST Act. The goods, P.V. Solar Modules etc., were being transported from West Bengal to Ghaziabad. The seizure was based on the ground that the E-Way Bill had not been downloaded. The petitioner contended that there was a technical issue preventing the E-Way Bill download prior to the seizure. The penalty order had not yet been passed at the time of the writ petition. The petitioner is engaged in the trading of accounted goods.
Held
The Court directed the release of the seized vehicle and goods forthwith, subject to the petitioner depositing a bank guarantee equivalent to the value of the tax on the goods. While the Court acknowledged the petitioner's challenge to the seizure order and notice, it did not delve into the merits of the alleged technical issue or the legality of the seizure itself. Instead, it opted for a practical resolution by ordering the release of goods upon furnishing security. The Court disposed of the writ petition with this direction, implying that the ultimate determination of tax liability and penalty would likely follow the standard procedures after the goods are released. The Court did not expressly decide on the validity of the seizure or the notice.
Key Issues
1. Whether the seizure of goods and vehicle under Section 129(1) of the U.P. GST Act was justified when the E-Way Bill could not be downloaded due to a technical issue prior to the seizure? (Question of mixed law and fact, turning on Section 129(1) of the U.P. GST Act). Petitioner's Contention: The petitioner argued that the seizure was illegal as the failure to download the E-Way Bill was due to a technical problem and not an intentional evasion of tax. They emphasized that the goods were accounted for. Respondent's Contention: The respondent (Union of India and others) contended that the non-download of the E-Way Bill constituted a violation of the GST provisions, justifying the seizure under Section 129(1).
Sections Cited
Section 129(1), Section 129(3)
AI-generated summary — verify with the full judgment below
Court No. - 35 Case :- WRIT TAX No. - 873 of 2017 Petitioner :- M/S Vikram Solar Pvt. Ltd.
Respondent :- Union Of India Thru' Secy. & 3 Others Counsel for Petitioner :- Rishi Raj Kapoor Counsel for Respondent :- C.S.C.,A.S.G.I.
Hon'ble Bharati Sapru,J.
Hon'ble Neeraj Tiwari,J.
Heard Shri R.R. Kapoor, learned counsel for the petitioner and Shri C.B. Tripathi, learned Standing Counsel for the respondent.
This writ petition has been filed by the petitioner to challenge the seizure order dated 16.12.2017 passed under Section 129(1) U.P. GST Act (hereinafter referred to as the 'Act') as well as the consequential notice dated 16.12.2017 passed under Section 129(3) of the Act.
The ground for making seizure of goods is that the E-Way Bill had not been downloaded. However, it has come on record that before seizure there was some problem in downloading the E-way bill. The penalty order has not yet been passed. The petitioner is engaged in the trading of P.V. Solar Modules etc., which are all accounted for goods. The goods have been carried from West Bengal to Ghaziabad.
Subject to deposit of bank guarantee, equal to the value of the tax on goods, the petitioner's vehicle and goods which have been seized may be released forthwith.
The writ petition is accordingly disposed of.
Order Date :- 4.1.2018 pks
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.