Case Law Details
Ashok and Sons (HUF) Vs Joint Commissioner, State Tax (Calcutta High Court)
Calcutta High Court held that due to expiry of e-way bill, authorities are empowered to detain the goods and impose tax and penalties thereon as per provisions of section 129 of Central Goods and Services Tax Act, 2017.
Facts- The petitioner is the manufacturer/supplier of milestone Bitumen Emulsion and Allied products. The petitioner is a Registered Taxable Person duly registered under the GST Act with specific GSTIN number. In course of business, the petitioner supplied 158 drums of Bitumen Emulsion containing 200 kgs in each drum, in all measuring about 31,600 kgs with invoice No.555/2021-22 dated 5th March, 2022 generating proper E-Way bill dated 5th March, 2022 which was valid up to 9th March, 2022 from Begusarai to Guwahati.
In course of transportation the good carriage suffered from breakdown and it was detained in a motor vehicle garage within the jurisdiction of Jalpaiguri. The vehicle was intercepted by the State Tax Officer on 12th March, 2022 and on inspection it was found that E-Way bill in respect of the consignment had expired. Subsequently, the Assistant Commissioner, Bureau of Investigation Headquarter imposed SGST at the rate of Rs.2,58,804/-and penalty on SGST to the tune of Rs.7,18,900 and asked the petitioner to pay the said tax with penalty. In order to release the vehicle the petitioner had to pay tax and the vehicle, but preferred an appeal before the appellate authority. By an order dated 23rd August, 2022 the appeal was dismissed.
Conclusion- In the instant case the petitioner’s consignment was found lying within the territory of the state for more than three days. The E-Way bill had expired. The driver of the vehicle stated that the vehicle suffered a breakdown. In support of his contention he failed to produce proper document. The petitioner had the opportunity to extend the validity of the E-Way bill when the goods vehicle was allegedly had mechanical defect. The petitioner did not take any step for extension of E-Way bill. When the E-Way bill has not been extended it would be presumed that the consignment was sent to the State of West Bengal. Therefore, Section 129 of GST Act empowers the authority to impose tax and penalties.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
