2019 (4) TMI 1602 - HC - GST

Detention of goods with vehicle - detention on the ground that no e-way bill has been tendered - rule 138 of the Central Goods and Services Tax Rules, 2017 - HELD THAT - Issue Notice returnable on 2nd May, 2019.

Summary

Issues involved:
- Interpretation of Notification No.27/2017-Central Tax regarding e-way bill requirement for specified goods during transportation.
- Detention of goods and conveyance by authorities for not tendering e-way bill despite goods falling under the specified category.

Interpretation of Notification No.27/2017-Central Tax:
The petitioner's advocate highlighted that the goods being transported were jeera and souff, falling under the category of fennel and cumin as per item No.62 of the annexure in Notification No.27/2017-Central Tax. The advocate pointed out that the notification exempts the generation of e-way bills for specified goods during transportation. Despite this, the goods and conveyance were detained by authorities for not presenting an e-way bill, leading to a notice for confiscation under section 130 of the Central Goods and Service Tax Act, 2017. The advocate argued that as per the notification, no e-way bill was required for transporting the mentioned goods, thereby questioning the detention and confiscation actions taken by the authorities.

Court's Decision and Action Taken:
Considering the submissions made by the petitioner's advocate, the court issued a notice returnable on 2nd May, 2019. Direct service was permitted on the same day. The court's decision to issue a notice indicates a preliminary acceptance of the petitioner's argument regarding the interpretation of Notification No.27/2017-Central Tax and the subsequent detention of goods and conveyance by the authorities despite the exemption provided in the notification. The notice sets the stage for further legal proceedings to address the discrepancy between the statutory provisions and the actions taken by the authorities in this case.

This detailed analysis of the judgment from the Gujarat High Court highlights the issues related to the interpretation of a tax notification exempting e-way bill generation for specified goods and the subsequent detention of goods and conveyance by authorities. The court's decision to issue a notice based on the petitioner's argument signifies a potential challenge to the actions taken by the authorities, setting the groundwork for further legal proceedings to resolve the matter.