2024 (5) TMI 604 - HC - GST

Penalty order u/s 129(3) of the Uttar Pradesh Goods and Services Tax Act 2017 - penalty order subsequent to search and seizure of the godown - HELD THAT - In the present case the proceedings under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act 2017 have been initiated subsequent to search of the business premises of the petitioner. It has been categorically held by the coordinate Bench of this Court in Mahavir Polyplast Pvt. Ltd. Vs. State of U.P. and 2 others 2022 (8) TMI 410 - ALLAHABAD HIGH COURT that search and seizure of the godown cannot result in penalty proceedings under Section 129 of the Act. The present proceedings are not justified and accordingly the impugned orders dated June 23 2018 and May 7 2019 are quashed and set aside - petition allowed.

Summary

Issues Involved:
The judgment deals with penalty proceedings under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 following a search of the petitioner's business premises.

Summary:

Issue 1 - Penalty Proceedings u/s 129(3) of the Act:
The petitioner challenged a penalty order dated June 23, 2018, passed under Section 129(3) of the Act, and an appeal order dated May 7, 2019, under Section 107 of the Act. The court noted that penalty proceedings cannot be initiated solely based on a search and seizure of premises, as established in the case of Mahavir Polyplast Pvt. Ltd. Vs. State of U.P. The court found the penalty proceedings unjustified and quashed the impugned orders. The respondents were directed to refund the tax and penalty amount deposited by the petitioner within four weeks.

Conclusion:
The High Court of Allahabad, in the judgment, allowed the writ petition, setting aside the penalty orders and directing the refund of the deposited amount within a specified timeframe.