2022 (3) TMI 547 - HC - GST

Identification of transport vehicles, which are accompanied along with E-way Bill - clandestine transportation of liquor in the State of Bihar - HELD THAT - Considering the measures which are suggested to be undertaken by the Prohibition and Excise Department and the Commercial Taxes Department a procedure is required to be evolved to stop import of the illicit liquor inside the State of Bihar by the organized traders in view of the fact that the complicity of the registered dealer inside the State of Bihar under the provision of GST in such cases cannot be ruled out to have illegally imported in garb of schedule goods as liquor has been left outside the purview of GST, as well as, the commercial vehicles entering with liquor without any documents. This Court is of the opinion that a combined effort is required to be taken by the three departments i.e. Commercial Taxes Department, the Department of Prohibition and Excise and the Transport Department to inform this Court about the measures taken by the Government to stop the trade of illicit liquor - the matter will be heard on the point of bail after receiving the report with regard to general procedure to be adopted and particularly with respect to the allegations made in the F.I.R. against the petitioner in the present bail application. List this case on 10.03.2022 under the appropriate heading.

Summary

Issues: Evolving a procedure to prevent the import of illicit liquor into the State of Bihar, the role of different departments in stopping the trade of illicit liquor, and the need for a combined effort by the Commercial Taxes Department, Prohibition and Excise Department, and Transport Department.

Analysis:

The judgment addresses the issue of preventing the import of illicit liquor into the State of Bihar. It highlights the steps taken by the Commissioner, Commercial Taxes, Bihar to collect relevant documents, including E-way Bills, for vehicles entering the state. The court emphasizes the importance of tracking transport vehicles to identify any involvement in clandestine transportation of liquor. The judgment underscores the significance of the GST system in ensuring hassle-free movement of goods and the need for a procedure to prevent evasion of tax through clandestine activities.

Regarding the exclusion of liquor from GST due to the constitutional mandate and statutory provisions, the judgment points out the prohibition of liquor in Bihar. Despite the prohibition, illicit liquor is being brought into the state clandestinely. The court emphasizes the need for a procedure to stop the trade of illicit liquor, considering the complicity of registered dealers and vehicles entering Bihar without proper documentation. The judgment underscores the inherent power of physical verification by authorities under the GST Act and Rules to check transport vehicles for compliance.

The judgment calls for a combined effort by the Commercial Taxes Department, Prohibition and Excise Department, and Transport Department to address the issue of illicit liquor trade effectively. It emphasizes the necessity of these departments working together to prevent the import of illicit liquor and inform the court about the measures taken. The court schedules a further hearing to consider bail after receiving a report on the general procedure to be adopted and the specific allegations in the FIR against the petitioner. The case is listed for the next hearing under the appropriate heading on a specified date.