2018 (11) TMI 56 - HC - GST

Detention of goods with vehicle - detention on the ground that the vehicle number do not tally with the vehicle number mentioned on the E-way bill - Held that - The circular of the Government of India, Ministry of Finance, Department of Revenue Central Board of Direct Taxes and Custom GST Policies Wing dated 14.09.2018, which modifies the earlier circular dated 13.04.2018 clearly stipulates that in case of minor discrepancies in the details mentioned in the E-way bill, specially errors of one or two digits/character of the vehicle number would not be sufficient for initiation of any proceedings under the Act. Goods with vehicle is directed to be released - petition disposed off.

Summary

Issues: Detention of goods due to discrepancy in vehicle number on E-way bill.

The High Court of Allahabad heard the case where the petitioner's Aluminium scrap was detained during transportation from Kanpur to Jaunpur under Section 129(1) of the U.P. GST Act. The detention was solely based on the discrepancy that the vehicle number did not match the one mentioned on the E-way bill. The petitioner, a registered dealer, had already realized the requisite tax as per the invoice. The court noted that a circular by the Government of India, Ministry of Finance, Department of Revenue Central Board of Direct Taxes and Custom GST Policies Wing dated 14.09.2018, clarified that minor discrepancies in the E-way bill, such as errors of one or two digits/characters in the vehicle number, should not lead to the initiation of proceedings under the Act.

Considering the above, the court ordered the release of the goods and the petitioner's vehicle immediately upon the petitioner furnishing an indemnity bond equivalent to the tax and penalty liability mentioned in the notice under Section 129(3) of the Act. The writ petition was disposed of with this direction, emphasizing the importance of the circular in cases of minor discrepancies in E-way bills to prevent unnecessary detention of goods.