Goods intercepted for not updating e-way bill: HC Quashes Order, gives opportunity for Fresh Hearing

The Allahabad High Court has recently set aside the appellate authority’s order that dismissed an appeal due to delay.

The assessee company, M/S Paharpur 3P Pvt., manufactures flexible laminates, packing rapper, etc. The company supplied goods to M/S Britannia Industries in Guwahati, which were rejected for being defective. While the goods were returning to the Sahibabad factory, along with the original papers, the same were intercepted by authorities for not updating the e-way bill. Due to this, the GST authorities imposed a penalty on the petitioner through the GST order dated 07.05.2024.

The company filed an appeal before the lower authority, but it was dismissed through an order dated 13.11.2024 for being filed beyond the three-month period prescribed under the GST Act. Therefore, the company filed a petition before the Allahabad High Court.

The company argued that they had submitted the appeal within the extended one-month period as allowed under the GST law, but the lower authority did not look into the merits of the case and arbitrarily and illegally dismissed the appeal. According to the company’s counsel, the delay happened because the company forgot to ask their counsel to file the appeal due to a mistake by their accountant. When the petitioner came to know about the mistake, it immediately filed the appeal.

The High Court observed that the lower authority had failed to consider the explanation for the delay submitted by the petitioner. It was also noted that the appeal was filed within the extended one-month period. Therefore, the Court quashed the appellant’s order and sent the matter to the appellate authority. The Court also directed the authority to give the petitioner an opportunity for a hearing.