2023 (3) TMI 933 - HC - GST

Heavy levy on duty with penalty - validity of the e-Way bills had expired - Case of Revenue is that the whole e-Way bills system has now gone online and the same could have been extended on time but was not extended - HELD THAT - This Court is of the opinion that the e-Way bills had expired during the transit and the petitioner was not in a position to ask for its renewal to the competent authority when the vehicle entered into the territory of the State of Tripura. In view of the said fact, this Court is of the opinion that the order dated 06.04.2021 passed by the Appellate Authority is not just and proper and the same is liable to be set aside. Petition allowed.

Summary

Issues:
1. Validity of e-Way bills for delayed entry of goods into Tripura
2. Imposition of duty and penalty for expired e-Way bills
3. Dismissal of appeals by Appellate Authority
4. Petition for setting aside and quashing the impugned order

Analysis:

1. Validity of e-Way bills for delayed entry of goods into Tripura:
The petitioner's vehicles carrying taxable goods entered Tripura later than expected, causing the e-Way bills to expire. Despite carrying duty-paid goods without any intention to evade duty, authorities imposed a fresh levy of duty and penalty. The petitioner filed a writ petition seeking the release of seized goods, which was initially disposed of with conditions to deposit 25% of disputed tax and penalty and secure the total demand by a bond. The petitioner later filed appeals before the Appellate Authority within the stipulated time limit.

2. Imposition of duty and penalty for expired e-Way bills:
The petitioner argued that due to unforeseen circumstances, the movement of vehicles carrying goods was delayed, leading to the expiration of e-Way bills. The GST authorities imposed heavy duty with penalties, which the petitioner deemed irrational and arbitrary. The Appellate Authority, however, dismissed the appeals, prompting the petitioner to file the instant petition seeking to set aside and quash the order dated 16.04.2021.

3. Dismissal of appeals by Appellate Authority:
The Appellate Authority considered the appeals filed by the petitioner on 16.04.2021 and subsequently dismissed them. The petitioner contended that the order did not provide substantive and conscionable justice, leading to the filing of the current petition to challenge the said order.

4. Petition for setting aside and quashing the impugned order:
After hearing both parties and reviewing the evidence, the Court found that the e-Way bills had indeed expired during transit, and the petitioner could not renew them upon entering Tripura. Consequently, the Court held that the order passed by the Appellate Authority was unjust and improper, leading to its decision to set it aside. As a result, the writ petition was allowed, and the impugned order was quashed, entitling the petitioner to all consequential benefits, including a refund.

In conclusion, the Court's decision favored the petitioner, emphasizing the importance of considering the circumstances surrounding the expiration of e-Way bills and the subsequent imposition of duty and penalties.