Nezone Tubes Ltd. Vs Union of India (Jharkhand High Court)
Summary: The Jharkhand High Court in Nezone Tubes Ltd. v. Union of India, W.P.(T) No. 4370 of 2022, examined whether an expired e-way bill, without any intention to evade tax, justified proceedings under Section 129 of the CGST Act. The petitioner transported 20.010 MT of electric welded steel tubes from West Bengal to Jamshedpur with an invoice and other documents. Its vehicle was intercepted on 6 November 2021 after the e-way bill expired. Physical verification found no discrepancy in the quantity or description of goods, yet tax and penalty of Rs. 5,18,660 were imposed.
The petitioner explained that Diwali restrictions had prevented the truck from entering the Adityapur Industrial Area, leaving it close to its destination when the e-way bill expired. It challenged the detention order dated 8 November 2021 and the appellate order dated 26 May 2022, submitting that genuine transportation documents and the absence of evasion made the demand unsustainable. The Revenue maintained that the authorised representative was given a hearing and had sought prompt release of the vehicle, after which the demand was paid.
The Court considered the Allahabad High Court decision reported in 2022 VIL 340 ALH, the Supreme Court order reported in 2023 VIL 62 SC, a Calcutta High Court ruling reported in 2023 VIL 370 CAL, Hanuman Ganga Hydro Projects Private Limited and Rivigo Services Private Limited. It noted that the truck had been stopped roughly one kilometre from the industrial area due to festive restrictions, an explanation not controverted by the Revenue. The remaining documents were valid and no discrepancy in the consignment was found.
