M/s Maruti Enterprises & Others v. State of U.P.

Analytical Video : https://youtu.be/2t5OE_aiL-Y

Introduction

The Allahabad High Court, in the case of M/s Maruti Enterprises, M/s Shiv Shanker Enterprises, M/s Praveen Supari Bhander and Shiva Enterprise v. State of U.P. and Another, examined an important question concerning the jurisdiction of GST authorities in a transit State. The controversy arose when goods being transported from West Bengal to Delhi were intercepted by the GST authorities of Uttar Pradesh during transit. The Court was called upon to determine whether a State through which goods merely pass can detain such goods and impose penalties under Section 129 of the GST laws, particularly when the transaction neither originates nor terminates within that State. The judgment provides significant clarity on the limits of jurisdiction of GST authorities in inter-State trade and the treatment of procedural discrepancies such as non-generation of e-invoices.

Facts of the Case

The petitioners were registered dealers under the GST laws and had purchased goods from a supplier situated in the State of West Bengal. The goods were being transported from Falakata in West Bengal to New Delhi under valid tax invoices and e-way bills. During the course of transportation, the goods passed through the State of Uttar Pradesh, which was merely a transit route and had no connection with either the origin or destination of the goods.