ORDER
1. Heard learned counsel for the petitioner and learned ACSC for the State respondents.
2. By means of present petition, the petitioner is assailing the order dated 31.1.2021 passed by respondent no. 2.
3. Learned counsel for the petitioner submits that the petitioner is a proprietorship firm and engaged in the business of manufacturing of all kinds of wire netting (fencing), barbed, wires, nails & welded wire mesh. He submits that in the normal course of business, the petitioner purchased the goods from M/s Shakumbhari Ispat & Power Ltd, West Bengal for its transportation to Ghaziabad, UP. He submits that the goods in question were loaded in Vehicle No. RJ02 GB5224 and at the time of movement of the goods, the driver of the vehicle has been instructed to take the vehicle at the place of job work i.e. M/s Usha International, which was at a distance of only 1 km from the place of petitioner’s firm. Thereafter, delivery challan and e-way bill was also generated. He submits that the goods were intercepted on 18.4.2019 and the driver of the vehicle produced the document accompanying the goods but no document with regard to job work has been handed over and the same was generated and produced prior to seizure order could be passed. He submits that there was no intention to avoid the payment of tax as the delivery challan and e-way bill was produced prior to seizure order but being not satisfied with the same, the proceedings under Section 129 (3) has been initiated in which the impugned order has been passed against which an appeal has been filed which has also been dismissed.
4. He submits that there was no intent of the petitioner to evade the payment of tax. He submits that before the seizure order could be passed, the e-way bill and tax invoice were prepared and same were produced but the same has not been considered. He prays for allowing the writ petition.
5. Per contra, learned ACSC supports the impugned order and submits that goods in question were not accompanying with proper/ genuine documents at the time of interception, therefore, the proceedings are justified. He submits that even assuming without admitting the same that the goods were sent for job work, requisite / specific documents must be accompanied with the goods in compliance of the provisions of Rule 45 read with Rule 55 of GST Rules.
6. In support of his submission, learned ACSC has relied upon the judgment of this Court in the case of Famus India v. State of U.P. 437/109 GST 392/97 GSTL 121 (Allahabad)/(Neutral Citation No. 2025:AHC:34283), Nippon Tubes Ltd. v. State of UP [Writ Tax No. 6 of 2021, dated 17-9-2025]/(Neutral Citation No. 2025:AHC:164090).
7. After hearing learned counsel for the parties, the Court has perused the records.
8. It is not in dispute that goods were moved from West Bengal to UP and at the time of interception, no proper/ requisite documents were produced in respect of the goods sent for job work but no documentary evidence was adduced, however, before the seizure order, the e-way bill was produced.
9. This Court in the case of Nippon Tubes Ltd. (supra) has held as under:
10. The record shows that in respect of the goods sent for job worker, no relevant document i.e. delivery challan was prepared as required under Rule 45 and 55 of GST Rules and further no e-way bill was produced at any stage. Therefore, in the absence of said document, the goods in question cannot be said to be accompanying with specified documents.
11. This Court in the case of M/s Famus India (supra) has held as under:
“9. Admittedly, the goods in question were transported from Ghaziabad to Meerut on 28.6.2019 and at the time of interception, the goods in question were found at different destination from the destination mentioned in the accompanying documents. After physical verification as well as detention of goods, a stand has been taken by the petitioner that the goods were sent for job work, a challan has been issued as such there is no contravention of the provisions of the Act. However, learned ACSC has submitted that there are contravention of the provisions prescribed under Rule 45 and 55 of the GST Rules as goods send for job work a challan is required to be issued and in the absence thereof, the proceedings are justified.
10. Before proceeding further, it is pertinent to quote here the relevant Rules of GST Rules:-
Rule 45: Conditions and restrictions in respect of inputs and capital goods sent to the job worker
(1) The inputs, semi-finished goods or capital goods shall be sent to the job worker under the cover of a challan issued by the principal, including where such goods are sent directly to a job-worker 1[, and where the goods are sent from one job worker to another job worker, the challan may be issued either by the principal or the job worker sending the goods to another job worker:
Provided that the challan issued by the principal may be endorsed by the job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal:
Provided further that the challan endorsed by the job worker may be further endorsed by another job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal.]
(2) The challan issued by the principal to the job worker shall contain the details specified in rule 55.
(3) The details of challans in respect of goods dispatched to a job worker or received from a job worker 2[******] 3[during a specified period] shall be included in FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month succeeding 4[the said period] 5[or within such further period as may be extended by the Commissioner by a notification in this behalf:
Provided that any extension of the time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to benotified by the Commissioner.]
(4) Where the inputs or capital goods are not returned to the principal within the time stipulated in section 143, it shall be deemed that such inputs or capital goods had been supplied by the principal to the job worker on the day when the said inputs or capital goods were sent out and the said supply shall be declared in FORM GSTR-1 and the principal shall be liable to pay the tax along with applicable interest.
Rule 55. Transportation of goods without issue of invoice.-
(1) For the purposes of-
| (a) | | supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, |
| (b) | | transportation of goods for job work, |
| (c) | | transportation of goods for reasons other than by way of supply, or |
| (d) | | such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing the following details, namely:- |
| (i) | | date and number of the delivery challan; |
| (ii) | | name, address and Goods and Services Tax Identification Number of the consigner, if registered; |
| (iii) | | name, address and Goods and Services Tax Identification Number or Unique Identity Number of the consignee, if registered; |
| (iv) | | Harmonised System of Nomenclature code and description of goods; |
| (v) | | quantity (provisional, where the exact quantity being supplied is not known); |
| (vii) | | tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee; |
| (viii) | | place of supply, in case of inter-State movement; and |
(2) The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner, namely:-
| (a) | | the original copy being marked as ORIGINAL FOR CONSIGNEE; |
| (b) | | the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and |
| (c) | | the triplicate copy being marked as TRIPLICATE FOR CONSIGNER. |
(3) Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared as specified in rule 138.
(4) Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.
(5) Where the goods are being transported in a semi knocked down or completely knocked down condition 1[or in batches or lots] –
| (a) | | the supplier shall issue the complete invoice before dispatch of the first consignment; |
| (b) | | the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice; |
| (c) | | each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and |
| (d) | | the original copy of the invoice shall be sent along with the last consignment. |
11. On bare reading of the aforesaid rules, it appears that there is requirement for issuing a challan for the goods send to job work. Rule 55 provides that challan should be issued or in duplicate and duly filled in prescribed format.”
12. Once there was neither any delivery challan as required under Rule 45 read with Rule 55 of the GST Rules nor any e-way bill was accompanying with in respect of the goods sent for job worker, the proceedings initiated against the petitioner by the respondent authorities, cannot be said to be illegal or arbitrary in manner.
13. In view of above, no interference is called for by this Court in the impugned order.
14. The writ petition lacks merit and is dismissed accordingly.
11. The issue involved in the present case is squarely covered with the decision of this Court in the case of Nippon Tubes Ltd. (supra).
12. In view of the facts and circumstances of the case as well as law laid down by this Court as referred herein above, no interference is called for by this Court in the impugned orders.
13. The writ petition lacks merit and same is dismissed accordingly.