2020 (8) TMI 39 - HC - GST

Release of detained goods alongwith vehicle - detention on the ground that the e-way bill covering the interstate movement of the goods had not been produced before the detaining authority when demanded - HELD THAT - It is the case of the petitioner that the e-way bill covering the second leg of the journey from Cochin to Kasargod had been produced. The said explanation however, could not suffice to explain the absence of the e-way bill covering the first leg of the journey. Under the said circumstances, the detention of the vehicles and the goods cannot be said to be unjustified. The petitioner may be permitted to obtain a release of the vehicles and the goods on furnishing a bank guarantee for the amount demanded in Exts.P5 and P5(a) notices, it is directed that, if the petitioner furnishes a bank guarantee to cover the amount demanded in Exts.P5 and P5(a) notices, the respondent shall forthwith release the vehicles and the goods to the petitioner - petition disposed off.

Summary

Issues: Detention of vehicles and goods due to non-production of e-way bill, request for release on furnishing bank guarantee, adjudication under Section 130 of the GST Act.

The judgment addresses the detention of vehicles and goods based on the non-production of an e-way bill. The petitioner had produced the e-way bill covering the second leg of the journey but failed to provide the e-way bill for the first leg. The court found the detention justified under these circumstances. However, considering the petitioner's request to obtain a release by furnishing a bank guarantee for the demanded amount, the court directed the respondent to release the vehicles and goods upon receiving the bank guarantee. The court further instructed the respondent to proceed with adjudication under Section 130 of the GST Act, where the petitioner's objections regarding tax and penalty imposition would be considered.

The judgment emphasizes that the respondent must release the vehicles and goods upon the petitioner furnishing a bank guarantee covering the amount demanded in the detention notices. It also highlights the importance of adjudicating the matter under the provisions of the GST Act, specifically Section 130, where the objections raised by the petitioner regarding tax and penalty imposition will be addressed. The court's directive aims to ensure a fair and lawful resolution to the dispute, maintaining the legal procedures outlined in the GST Act.

The court's decision to dispose of the writ petition in the manner described signifies a balanced approach to the issue at hand. By allowing the petitioner to secure the release of the vehicles and goods through a bank guarantee and ensuring a proper adjudication process under the GST Act, the judgment promotes a transparent and structured resolution mechanism for disputes related to tax and penalty imposition. The communication of the order by the learned Government Pleader to the respondents underscores the urgency in facilitating the prompt clearance of the vehicles and goods, emphasizing efficiency and compliance with legal directives.