F S Enterprise Vs State of Gujarat (Gujarat High Court)
The Gujarat High Court disposed of multiple petitions through a common judgment as the facts and issues involved were substantially similar. The petitioner, a proprietary concern registered under the GST Acts, had supplied TMT bars and related goods pursuant to an order from a registered buyer in Maharashtra. Before dispatch, the petitioner generated an e-way bill containing complete details of the invoice and the buyer. During transportation, the driver carried the tax invoice, transport receipt, and e-way bill.
The goods in transit were intercepted by the State Tax Officer and detained under section 129 of the GST Acts. The detention was based on the ground that the transport receipt was a photocopy and contained handwritten details. Despite the petitioner producing all required documents and explaining that such transport receipts were commonly shared as scanned copies and filled at dispatch, the authorities issued a notice demanding tax and penalty for release of goods. The petitioner challenged the detention and the notice.
The petitioner argued that section 129 is a stringent provision and should be invoked only in cases involving serious discrepancies indicating tax evasion. It was contended that all statutory requirements were fulfilled, including issuance of tax invoice and generation of e-way bill prior to movement of goods, and hence there was no contravention of the GST provisions. It was further submitted that no specific format for transport receipt is prescribed under the GST law, and therefore detention on such ground was arbitrary.
