Court reviews tax penalty deletion appeal, finds discrepancies in goods transportation. Respondent ordered to file counter affidavit.

The court entertained the writ petition challenging the Appellate Authority's order deleting a penalty imposed under Section 129 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner argued that the findings of the first Appellate Authority were perverse, pointing out discrepancies in the transportation of goods and false explanations provided by the respondent. The court directed the respondent to file a counter affidavit, with further proceedings pending. The court also ordered the release of the goods and vehicle to the respondent upon depositing a specified amount in cash and providing security.

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Issues:
Challenge to order of Appellate Authority under Section 129 of the Uttar Pradesh Goods and Services Tax Act, 2017.

Analysis:
The writ petition challenges the order of the Appellate Authority dated 05.11.2018, which had deleted the penalty imposed by the Assistant Commissioner (Mobile Squad), Jhansi under Section 129 of the Act. The petitioner's counsel argues that due to the absence of a constituted Tribunal, the revenue is left without a statutory remedy, justifying the entertainment of the writ petition. The Tribunal being pending constitution, the writ petition has been entertained.

On the merits of the case, it is contended that the findings of the first Appellate Authority are deemed perverse. The respondent had claimed to transport two consignments of different goods from Sonipat to Jhansi on specific dates, but investigations revealed discrepancies. The explanation provided by the assessee regarding the first transaction was found false, and discrepancies in the quantity of seized goods were established, leading to penalty proceedings. The petitioner argues that the first Appellate Authority erred in overlooking these vital aspects and in deleting the penalty.

The court has directed the respondent's counsel to file a counter affidavit within four weeks, followed by a rejoinder affidavit within two weeks. The matter has been listed for further proceedings. Meanwhile, subject to the respondent depositing a specified amount in cash and providing security, the goods in question along with the vehicle shall be released in favor of the respondent.

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