GST DAILY – 489 : No tax evasion if old machine was transferred from head office to branch for its own use; penalty to be set aside: HC

THE HON’BLE ALLAHABAD HIGH COURT IN THE CASE OF D and D Construction and Developers Company V/s Additional Commissioner

, decided on 8-4-2025

👉 Issue:-

✔️ Is it tax evasion if old machine was transferred from head office to branch for its own use?

👉 The Hon’ble High Court Judgement:-

✔️ Where assessee was transferring its machine from head office to its work place in UP and same was detained and impugned order was passed imposing penalty on ground that goods were not accompanied with invoice, since delivery challan itself showed that goods were being transferred, no element of sale was involved and no tax evasion could be attributed; impugned orders were to be quashed.

Section 129 of Central Goods and Services Tax Act, 2017