Allahabad High Court: Goods In Transit Cannot Be Treated As Traceable In Presence Of Tax Invoice, E-Way Bill And Bilty

The Allahabad High Court in the case M/S Bhawani Traders Versus State of U.P. observed and has quashed the penalty order passed in Form MOU-09 as stated under Section 129(1)(b) of the Goods and Services Tax Act, 2017 on the grounds that the goods in transit were duly accompanied by the tax invoice, e-way bill, and bilty.

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The bench comprising of Chief Justice Pritinker Diwaker and Justice Ashutosh Srivastava in the case observed and has relied upon the decision of the Allahabad High Court in the case of M/s Sahil Traders vs. State of U.P., wherein the court held that in face of the tax invoice and the E-way bill produced by the petitioner, the goods may not have been treated as not traceable to the registered dealer.