2018 (5) TMI 460 - HC - GST

Vires of Notification dated 21.07.2017 and the circulars dated 09.08.2017 and 10.08.2017 - various documents and the forms of the documents liable to be carried along with the goods in transit for a temporary phase till the E-Way bill system is developed - Held that - The formats of Form 38 and Form 21 have been adopted and prescribed as a format for E-Way Bill 01 and E-Way Bill 02. This has been done and permitted as an interim measure so that the trading activity and the transit of goods may not be affected till E-Way bill system is developed and approved by the council which is likely to take some time. The prescription of the forms under the impugned notification is only for temporary purpose and the notification itself is for an interim period till E-Way bill system is developed and approved by the council. The notification as stated earlier is not in violation of any statutory provision or Rule 138 of the Rules. The challenge to the notification and the circulars therefore has no merit - petition dismissed.

Summary

Issues:
Challenge to government notification prescribing documents for goods in transit until E-Way bill system approval.

Analysis:
The petitioner, an association of advocates, challenged a government notification and circulars prescribing documents for goods in transit until the E-Way bill system approval. The petitioner argued that the State Government lacked authority to prescribe such documents without council recommendations due to Article 279A of the Constitution. However, Section 165 of the U.P. Goods and Services Tax Act empowers the State Government to make regulations consistent with the Act by issuing notifications. Rule 138 allows the Government to specify documents for goods in transit until the E-Way bill system is approved by the council.

The court noted that the Rule is clear and unambiguous, allowing the State Government to prescribe documents for goods in transit until the E-Way bill system is developed and approved by the council. The notification prescribing documents was found to be in accordance with Rule 138 of the Rules and not in violation of any statutory provision. The State Government acted within its power under the Rules as a temporary measure until the E-Way bill system is approved.

Regarding the adoption of existing Form 38 and Form 21 for E-Way bills, the court observed that this was done as an interim measure to ensure smooth trading activity and transit of goods until the E-Way bill system is fully developed and approved by the council. The court emphasized that the prescription of forms under the impugned notification was temporary and aimed at maintaining business activities until the E-Way bill system is operational. The court found no merit in the challenge to the notification and the circulars, ultimately dismissing the petition for being devoid of merit.