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The Lucknow bench of the court granted the relief to the accused.
Qasmi is also an accused in another 2007 case of explosions on court premises in Lucknow, Varanasi and Faizabad.
A bench of Justices AR Masoodi and Saroj Yadav passed the order on an appeal filed by Qasmi.
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The bench heard the matter on March 23 and released the order on Tuesday.
A special sessions court in Barabanki sentenced Qasmi to life imprisonment in 2015. Qasmi had filed an appeal against his conviction.
Qasmi’s lawyer IB Singh had argued that the substance recovered from Qasmi was planted on him and that he was falsely implicated.
Additional Government Advocate Umesh Verma could not controvert that Qasmi was in jail for 16 years.
The Uttar Pradesh Police arrested Qasmi, along with another accused Mujahid, on December 22, 2007 from the Barabanki railway station and seized detonators and RDX from their possession.