2022 (2) TMI 845 - HC - GST

Seizure and detention of goods - goods detained on the ground that the E-Way Bill had expired, and that the vehicle was moving goods without a valid E-Way bill - HELD THAT - The facts on record indicates that the value of the consignments including tax partially exceeds a sum of ₹ 1,00,000/-. The issue as to whether the value would include tax and whether there was a violation has to be determined in the manner known to law by the authority under the Acts. At the same time, no useful purpose will be served by detaining the vehicle or the consignment of goods (cement) as it will only result in the cement getting spoilt. The respondents are directed to release the vehicle and the goods if the consigner namely M/s.Chettinad Cement Corporation Private Limited or the consignee namely M/s.Murugavel Traders or the petitioner as the owner of the vehicle furnishes a Bank Guarantee for the tax and proposed penalty for a specified period subject to the satisfaction of the respondents, within a period of fifteen (15) days from the date of receipt of a copy of this order - If such Bank Guarantee is furnished by the consigner namely M/s.Chettinad Cement Corporation Private Limited or the consignee namely M/s.Murugavel Traders or the petitioner as the owner of the vehicle, the vehicle and the goods shall be released by the respondents forthwith. This Writ Petition stands disposed of.

Summary

Issues:
Challenge to impugned order of detention under GST laws.

Analysis:
The petitioner challenged the detention of their vehicle and goods due to an expired E-Way Bill. The value of the consignment was below the threshold requiring an E-Way Bill. The petitioner's vehicle faced technical issues during transit, leading to the detention. The petitioner sought release of the goods and vehicle due to weather concerns.

Legal Argument:
The petitioner cited a Supreme Court decision supporting their case. The government advocate opposed the release, stating the petitioner did not provide any security for the goods' release. The government proposed releasing the vehicle and goods upon payment of tax and penalty.

Judgment:
The court noted the consignment's value exceeded the threshold, but detaining the goods would only lead to spoilage. Consequently, the court ordered the release of the vehicle and goods upon furnishing a Bank Guarantee for tax and penalty within fifteen days. Failure to comply would result in the authorities making decisions based on available records. The petitioner was directed to participate in proceedings related to proposed penalties. The writ petition was disposed of without costs.