Thread by @abhishekrajaram

⚖️ Court dismisses writ petition in a tax evasion case involving a registered dealer, transporter, and misuse of E-Way Bills. Find out how multiple transactions were made with the same documents and vehicle, leading to the dismissal. #TaxEvasion #GST #EWayBill

Facts & Timeline:

• On 08.04.2018, the petitioner, a registered dealer, sold 300 bags of Pan Masala valued at Rs.33,81,000 to a dealer in Meghalaya, generating a tax invoice and E-Way Bill under the IGST Act, charging 28% IGST and 60% Cess.

• The goods were handed over to transporter M/s Bombay Kandla Transport Pvt. Ltd. for transport via Truck No.NL01N/6504

• The vehicle was used for transporting fruits and vegetables to West Bengal on 07.04.2018, and then for transporting rice to Darbhanga (Bihar) on 12.04.2018

• On 17.04.2018, the vehicle was made available to the petitioner for transporting Pan Masala, and the journey began on the night of 17/18.04.2018.

• The goods were intercepted on 18.04.2018 by the Mobile Squad at Kanpur, and the driver produced the tax invoice and bility.

• A seizure order was passed on 01.05.2018, imposing 100% penalty, tax, and cess, totaling Rs.63,56,280. The petitioner's appeal was dismissed, leading to this writ petition.

• The petitioner argued that all necessary documents were present during transport, and there was no evasion of tax.

• The State Counsel argued that the E-Way Bill should have been canceled if the goods were not transported as per the details furnished, and that multiple transactions were made during this period using the same documents and vehicle.

• The court found that the dealer had misused the statutory provisions and that the taxing authorities' decision needed no interference.

• The writ petition was dismissed.

Title: M/S AYANN TRADERS vs. STATE OF U.P.

Court: ALLAHABAD HIGH COURT

Citation: Writ Tax No. 1319 of 2018

Dated: 27-Feb-2023