M/S Pioneer Pesticides P. Ltd. VS Additional Commissioner, Grade-2 And 2 Others

In this case, the petitioner, a registered dealer under the Central Goods and Services Tax Act, 2017 (referred to as the ‘Act of 2017’), challenges two orders: one dated March 20, 2021, issued by the Additional Commissioner, Grade-II (Appeal), Commercial Tax, Muzaffarnagar, and another dated July 1, 2020, issued by the Assistant Commissioner, State Tax, Mobile Squad, Unit-1, Mathura.

The facts of the case are as follows: The petitioner had generated an e-way bill on March 13, 2018, valid until March 15, 2018, for transporting goods from Mohali to Ghaziabad. During transportation, the goods were intercepted at Shamli on March 13, 2018, resulting in a seizure order under Section 129(1) of the U.P. GST Act in conjunction with Section 20 of the IGST Act.

Subsequently, a notice was issued under Section 129(3) of the Act of 2017 to determine the tax and penalty. The petitioner responded to this notice, but a penalty order was issued on July 1, 2020, under Section 129(3) of the Act of 2017. The petitioner then appealed against this penalty order, but the appeal was rejected on March 20, 2021.

In the current writ petition, the petitioner’s counsel referenced a decision made by a coordinate Bench of the court in Writ-C No. 33211. The petitioner seeks relief from the court by challenging the validity and enforcement of the orders that imposed the tax and penalty following the interception of the goods.

In this case, the petitioner, a registered dealer under the Central Goods and Services Tax Act, 2017 (referred to as the ‘Act of 2017’), challenges two specific orders. The first order, dated March 20, 2021, was issued by the Additional Commissioner, Grade-II (Appeal), Commercial Tax, Muzaffarnagar. The second order, dated July 1, 2020, was issued by the Assistant Commissioner, State Tax, Mobile Squad, Unit-1, Mathura.

The sequence of events is as follows: The petitioner generated an e-way bill on March 13, 2018, which was valid until March 15, 2018, for the transportation of goods from Mohali to Ghaziabad. On the same day, the goods were intercepted at Shamli, resulting in a seizure order issued under Section 129(1) of the U.P. GST Act in conjunction with Section 20 of the IGST Act.

Following this, a notice was issued under Section 129(3) of the Act of 2017 to determine the applicable tax and penalty. The petitioner responded to this notice, but despite their response, a penalty order was issued on July 1, 2020, under Section 129(3) of the Act of 2017. The petitioner subsequently appealed against this penalty order; however, the appeal was rejected by the Additional Commissioner on March 20, 2021.

In the current writ petition, the petitioner’s counsel argued based on a decision by a coordinate Bench of the court in Writ-C No. 33211, though the details of this referenced case were not provided in the summary. The petitioner is seeking relief from the court by challenging the validity and enforcement of the orders that imposed the tax and penalty following the interception of the goods. The core issue revolves around whether the procedural and substantive provisions of the Act of 2017 were correctly applied in the seizure and subsequent penalty proceedings.

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M/S Pioneer Pesticides P. Ltd.

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