M/S VISHAL STEEL SUPPLIER

VERSUS

STATE OF U.P. AND 3 OTHERS vide Writ Tax No. – 741 of 2020 dated 16.07.2024 

Citation: 2024 taxo.online 1492

The Allahabad High Court held that, under the GST Act, there is no requirement to disclose the route for goods transportation. The seizure order cannot be justified if the vehicle is not on its regular route unless the documents are not genuine. The absence of any finding of intent to avoid tax payment invalidates the proceedings. Reliance placed upon judgment in the case of M/s Om Prakash Kuldeep Kumar Vs. Additional Commissioner Grade-2 and another. The Court allowed the present writ petition and ordered that any amount deposited by the petitioner in the present proceedings shall be refunded. 

In this case, the goods were being transported from Muzaffarnagar to Ghaziabad with all required documents i.e. tax invoice, e-way bill, etc. Goods were detained in Hapur based on the assumption that they might be unloaded in Hapur without proper documents. It was submitted that there was no intent to avoid tax payment, as driver took an alternative route via Hapur due to heavy traffic on its normal route. However, the respondents contended that route deviation justified the initiation of proceedings against the petitioner.  

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