2022 (2) TMI 507 - HC - GST

Unwillingness to disclose the details regarding transported goods - transport of illicit liquor - HELD THAT - The very object of GST is One Nation-One Tax-One Market and keeping into consideration, hassle free movement of the vehicles carrying goods, the information regarding each transaction and details can be obtained free hand and such acknowledgment has to accompany with each truck has to be uploaded to a common portal through the internet and once uploaded to a common portal would automatically generate a document is issued, it can be tracked and verified easily by any stakeholders. The report submitted by Shri Prabhat Kumar, Joint Commissioner, Sales Tax (I.B), Commercial Taxes Department, Tirhut Divison, Muzaffarpur, is devoid of any consideration with respect to the E-Way Bill generated for the movement of the vehicles in question on which huge quantity of illicit liquor was being transported and seized by the Excise Officials from the site of National Informatics Centre without verifying the fact that whether any E-Way Bill was generated with respect to the said truck, with regard to the scheduled goods under G.S.T. Act and in the garb of the said, the said truck had carried illicit liquor. The above fact is necessary to establish the complicity of not only the petitioner but also the involvement of the dealers and transporters in the illicit trade of liquor. The Commissioner, Commercial Taxes, Bihar is directed to verify from the National Informatics Portal as to whether how many E-Way Bill has been generated with respect to the vehicle bearing Registration No. UP 78 DN- 7877 from the date of its registration and out of all such E-Way Bill, on how many occasion, the said vehicle has moved inside the State of Bihar. The report must be submitted before this Court on or before 15.02.2022 - Put up this case on 15.02.2022.

Summary

Issues: Unwillingness to disclose details regarding consignment note and E-Way Bill information for vehicles carrying illicit goods, lack of consideration for E-Way Bill in the report submitted, direction to verify E-Way Bill generation for the vehicle involved in the illicit trade of liquor.

In this judgment by the Honorable Mr. Justice Purnendu Singh at the Patna High Court, the issue revolves around the Joint Commissioner, Sales Tax (I.B.), Commercial Taxes Department, Tirhut Division, Muzaffarpur, expressing unwillingness to disclose crucial details regarding the consignment note, consignor, and consignee from the E-Way Bill information related to vehicles bearing specific registration numbers. The court emphasizes the significance of obtaining information freely to ensure hassle-free movement of goods in line with the One Nation-One Tax-One Market objective of GST. It stresses that details uploaded to a common portal must accompany each truck carrying goods, facilitating easy tracking and verification to prevent tax evasion. The judgment highlights the importance of physical verification of conveyances to combat illicit activities effectively.

Moreover, the report submitted by Shri Prabhat Kumar, Joint Commissioner, Sales Tax (I.B), is criticized for lacking consideration for the E-Way Bill generated for vehicles involved in transporting a substantial quantity of illicit liquor. The court notes that the report failed to verify whether an E-Way Bill was generated for the truck carrying illicit liquor, essential to establish the complicity of the petitioner, dealers, and transporters in the illicit liquor trade. Consequently, the Commissioner, Commercial Taxes, Bihar, is directed to verify the National Informatics Portal for the generation of E-Way Bills concerning the specific vehicle involved in the seizure of illicit goods. The court instructs the Commissioner to provide detailed information on E-Way Bill generation and vehicle movement within Bihar, specifically focusing on any E-Way Bills generated before the seizure date.

As a result, the Commissioner is required to submit the verified report to the Court by a specified date for further consideration. The judgment emphasizes the need for comprehensive verification of E-Way Bill information to establish accountability and prevent illicit activities effectively. The case is scheduled for further proceedings on a specified date to monitor the progress of the investigation and compliance with the court's directives, ensuring transparency and accountability in the tax enforcement process.