2018 (1) TMI 949 - HC - GST

Seizure of imported goods - penalty - seizure on the ground that the E-Way Bill was not found accompanying the goods though admittedly, the goods were being imported against regular Tax Invoice - Held that - it does appear that the E-Way Bill had been downloaded and produced though with some delay but before conclusion of the penalty proceedings - there is no allegation of evasion of tax liability established either from the reading of the show cause notice or the seizure order or the penalty order the consequential penalty imposed appear to have been occasioned upon a mere technical breach and not on account of any intention to evade tax - penalty and seizure order could not sustain - petition allowed.

Summary

Issues: Challenge to seizure order based on absence of E-Way Bill, Allegation of technical breach, Quashing of penalty order and seizure order, Release of goods and vehicle to petitioner.

In this case, the petitioner challenged a seizure order dated 06.12.2017, which seized the petitioner's goods, mainly TMT rod, being imported from West Bengal, due to the absence of an E-Way Bill accompanying the goods. The petitioner contended that although the E-Way Bill was not physically present with the goods, it had been downloaded from the department's website on 05.12.2017, before the penalty proceedings concluded. The court noted that there was no established allegation of tax evasion, and the penalty imposed seemed to be a result of a technical breach rather than an intention to evade tax. The court found no foundation for such allegations in this case.

Furthermore, the court acknowledged the existing difficulties and doubts surrounding the downloading and submission of E-Way Bills. Consequently, the court held that the penalty order and seizure order could not be sustained and were quashed. The court directed the release of the petitioner's vehicle along with the goods immediately. The writ petition was allowed, and no costs were imposed in this matter.