2020 (2) TMI 797 - HC - GST

Detention of goods alongwith vehicle - only reason for detention is that the vehicle number in Part B of the e-way bill mismatches with the actual vehicle number - HELD THAT - It is ordered that the goods and vehicle detained pursuant to Ext.P4 series of orders, shall be released by the 1st respondent to the petitioner on the petitioner furnishing bank guarantee for the value of the amounts shown in those orders. Petition disposed off.

Summary

Issues:
1. Detention of goods and vehicle under Sec.129(1) of the CGST Act due to mismatch in vehicle number on e-way bill.
2. Petitioner's request to quash the proceedings and release the detained goods and vehicle.
3. Granting of incidental reliefs and costs of the proceedings.

Analysis:
1. The petitioner, engaged in transportation of heavy commodities, faced detention of goods and vehicle by the 1st respondent under Sec.129(1) of the CGST Act due to a mismatch in the vehicle number on the e-way bill. The petitioner had transported plate metal plates from Chattisgarh to Calicut using a trailer with a prime mover. The prime mover broke down near Coimbatore, and after repairs, a different prime mover was attached to the trailer. The detention occurred due to the updated vehicle number not matching the original one on the e-way bill. However, the petitioner promptly informed the consignor about the substitution of the prime mover, and the delay in updating the e-way bill's details was not the petitioner's fault.

2. In response to the petitioner's prayers to quash the proceedings and release the detained goods and vehicle, the High Court ordered the 1st respondent to release the goods and vehicle upon the petitioner furnishing a bank guarantee for the amounts shown in the orders. The court directed the 1st respondent to finalize the adjudication proceedings after providing a reasonable opportunity for the petitioner to be heard through counsel. The court emphasized the need for timely resolution of the proceedings, ideally within 4-6 weeks from the date of the judgment.

3. The High Court disposed of the W.P.(C.) by granting the relief sought by the petitioner, subject to the conditions of providing a bank guarantee and ensuring a timely adjudication process. The court's decision aimed at balancing the interests of both parties while upholding the principles of natural justice and procedural fairness. The judgment highlighted the importance of compliance with GST regulations while also considering the practical challenges faced by the petitioner in the transportation process.