Govind Alloys Pvt. Ltd Vs State of Gujarat (Gujarat High Court)
The Hon’ble Gujarat High Court (“the High Court”) in the case of M/s. Shree Govind Alloys Pvt. Ltd. v. State of Gujarat (R/Special Civil Application No. 23835 of 2022) dated December 01, 2022, held that mere expiry of e-way bill during transit of vehicle cannot be a valid ground for detention and seizure.
Facts:
M/s. Shree Govind Alloys Pvt. Ltd. (“the Petitioner”) hired transporter for transporting goods and generated e-way bill for such transportation. Unfortunately, the vehicle was not in motorable condition due to which goods which could have reached to destination on October 17, 2022 did not reach. On October 19, 2022 during transit such vehicle was intercepted by GST Authority (“the Authority”) for inspection during which it was found that so generated e-way bill has been expired 41 hours before the time of inception. The Authority seized the vehicle along with goods and issued a detention order and a notice under Section 129(3) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). On November 04, 2022, the Authority passed an order (“the Order”) demanding tax and penalty.
Aggrieved by the Order of the Authority, the Petitioner filed a Special Civil Application before the High Court.
Issue:
Whether GST Authority can detain and seize transport vehicle along with goods in case e-way bill expires during the course of transit?
Held:
The High Court held that:
