Logistics Firm Wins Provisional Release After Challenging Penalty for Minor Documentation Discrepancy Under UPGST Rules

A transportation company's vehicle was intercepted due to a documentation error in the vehicle number. Despite no evidence of tax evasion, a substantial penalty was imposed. The SC granted provisional release of goods and vehicle, directing authorities to accept a bond and security as per UPGST Rules, thereby providing relief to the petitioner.

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Issues involved: Provisional release of goods and vehicle, mistaken vehicle number on documentation, penalty imposition, application for release on furnishing bond and security.

Summary:

The petitioner, a transportation company, was involved in the transportation of goods dispatched by M/s Havells India Limited to Shree Balaji Electric Company. Due to a mistake in the documentation where the vehicle number was wrongly mentioned, the vehicle was intercepted, and a penalty of Rs. 49,10,520/- was imposed. The petitioner rectified the mistake in the e-way bill and applied for provisional release of the goods and vehicle by furnishing a bond and security as per the rules.

The petitioner contended that there was no evidence of tax evasion and no detention order was issued under Section 129(1). The petitioner's request for provisional release was denied initially. However, the Standing Counsel for the respondents admitted that provisional release could be granted on furnishing the required security.

The Court allowed the writ petition and granted the relief sought by the petitioner. A mandamus was issued, directing the respondent to release the goods and vehicle provisionally upon the petitioner furnishing a bond and security in accordance with the UPGST Rules and the UPGST Act, 2017.

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