CJ Darcl Logistics Ltd. Vs State of U.P. And 3 Others (Allahabad High Court)
The Allahabad High Court, in the case of Cj Darcl Logistics Ltd. Vs State of U.P. And 3 Others, recently addressed the validity of seizure proceedings initiated under Section 129(3) of the GST Act when an e-way bill expires due to compelling circumstances like a vehicle breakdown, provided there is no evidence suggesting an intent to evade tax. The court ultimately ruled in favor of the petitioner, quashing both the detention and the subsequent appellate orders.
Case Background and Core Issue
The petitioner, Cj Darcl Logistics Ltd., a registered company engaged in the business of goods transportation, challenged the detention and seizure orders dated 25.12.2019 and 25.09.2020. The core contention was that two consignments of HR Coils being transported from Kanpur to Ludhiana, Punjab, were intercepted and seized solely because the accompanying e-way bills had expired during transit. The petitioner maintained that this expiry was not deliberate but resulted from an unavoidable mechanical failure of the transport vehicle.
The goods were loaded in a truck on 7th December 2019, accompanied by all necessary documents, including two tax invoices issued by Tata Steel Ltd. During the journey, the truck developed a breakdown and was towed to a mechanic shop in Loha Mandi, Ghaziabad, for necessary repairs. The repair process took several days, leading to the lapse of the e-way bill validity period.
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