M/s Godrej and Boyce Manufacturing Co. Ltd v/s. State of UP & 2 others

The writ petitions at hand challenge seizure orders and notices issued under sections 129(1) and (3) respectively, by various authorities primarily on the premise that E-Way Bills under the U.P. Goods and Service Tax Act 2017, in conjunction with the Integrated Goods and Services Tax Act 2017 and associated rules, were not accompanied by transporters during the interception of goods within the state of Uttar Pradesh, whether in the context of intra-state or inter-state transportation. The petitioners argue that there is no legal requirement for such accompanying E-Way Bills, asserting that provincial statutes cannot override provisions of central statutes, and any omissions were unintentional.

In one of the writ petitions, filed under Article 226 of the Constitution of India, the petitioner, M/s. Godrej and Boyce Manufacturing Company Limited, challenges an order dated March 21, 2018, passed by the Assistant Commissioner of State Commercial Tax, alleging evasion of State Goods and Service Tax (SGST) in relation to goods transported by a specific vehicle. The petitioner had transported six loading/unloading machines from its manufacturing unit in Thane, Maharashtra, to its Ghaziabad office for use at another company’s warehouse in Saharanpur, Uttar Pradesh. While an E-Way Bill was generated for some of the goods, there was a bona fide omission in generating it for the remaining items. The goods were intercepted on March 20, 2018, and detained due to the absence of the E-Way Bill. Subsequently, the transporter generated the E-Way Bill on March 21, 2018, but the Assistant Commissioner still passed a seizure order on the same day, along with a show cause notice under section 129(3).

In another writ petition, filed by M/s. LG Electronics India Limited, the interception memo dated March 15, 2018, seizure order dated March 16, 2018, and show cause notice dated March 16, 2018, issued by the Assistant Commissioner, State Commercial Tax Division Mobile Squad III, Sonbhadra, are challenged. This petition also contests a notification dated July 21, 2017, issued by the State of Uttar Pradesh, mandating the carrying of E-Way Bill-01 for the import of goods worth Rs. 50,000 or more from outside the state into Uttar Pradesh, along with letters issued on February 6, 2018, and February 18, 2018, by the State Government.

M/s. LG Electronics India Limited, a private limited company engaged in manufacturing electronic goods, asserts its challenge on grounds including its registration with the GST Department in Jharkhand and Uttar Pradesh, and the transportation of goods from Ranchi to Gautam Budh Nagar, Uttar Pradesh, by a registered transporter. The interception occurred despite the presence of original tax invoices and LR receipts, leading to a seizure order and a show cause notice for tax recovery and penalties. The petitioner argues that there is no legal provision mandating the carrying of E-Way Bill-01 during interstate transportation, thus contesting the jurisdiction of the impugned orders.

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