2018 (8) TMI 1994 - HC - GST

Seizure of goods alongwith the vehicle - expired E-Way bill - whether the expiry of the delivery time mentioned in the E-Way Bill would be construed as contravention of the provisions of GST Act? - HELD THAT - List for admission/final disposal after a month. In the meantime the goods and the vehicle seized on 10.08.2018 shall be released in favour of the petitioner on its furnishing security of the amount other than cash and bank guarantee equivalent to the proposed tax and the penalty already imposed.

Summary

Issues:
1. Seizure of goods and vehicle due to expired E-Way Bill.
2. Intention to evade tax and contravention of Act provisions.
3. Interpretation of delivery time expiry as contravention.

Analysis:
1. The case involves the seizure of goods and a vehicle on 10.08.2018 during transportation from Ghaziabad to Meerut due to an expired E-Way Bill. The petitioner's counsel argues that there was no intention to evade tax, and the delay was caused by external factors like a traffic jam due to "Kanvar Yatra" in Western U.P.

2. The petitioner's counsel asserts that the seizure order does not reflect any intention to evade tax. However, the respondent's counsel argues that under Section 129 of the Act, contravention of provisions automatically leads to goods seizure. The Act mandates goods in transportation to be accompanied by an E-Way Bill, emphasizing compliance with the law.

3. The crucial question raised is whether the expiration of the delivery time specified in the E-Way Bill constitutes a violation of the Act's provisions. The respondent's counsel is directed to seek instructions and submit a counter affidavit within three weeks, with the petitioner granted one additional week to file a rejoinder affidavit. The matter is listed for admission/final disposal after a month.

4. Pending the final decision, the court orders the release of the seized goods and vehicle in favor of the petitioner upon providing security equivalent to the proposed tax and imposed penalty, excluding cash and bank guarantee. This interim measure aims to balance the interests of both parties until a conclusive determination is reached during the subsequent court proceedings.