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2021 (7) TMI 1158 - HC - GSTDetention of motor vehicle - RANGE ROVER motor vehicle transported from Coimbatore to Thiruvananthapuram as 'used personal effect' of the 2nd respondent - detention on the ground that the same was transported without the E-way bill - requirement of e-way bill for personal effect goods - Rule 138 of the Kerala Goods and Service Tax Rules, 2017 - HELD THAT - It must be remembered that goods that are classifiable as used personal and household effect falls under Rule 138(14) (a) of the Kerala Goods and Services Tax Rules, 2017 and are exempted from the requirement of e-way bill. The 2nd respondent had purchased the vehicle after payment of IGST. A temporary registration was also taken apart from the motor vehicle insurance. The decision in the case of KUN MOTOR CO. PVT. LTD. AND VISHNU MOHAN VERSUS THE ASST. STATE TAX OFFICER, SQUAD NO. III, KERALA STATE GST DEPARTMENT AND STATE OF KERALA, REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, THIRUVANANTHAPURAM 2018 (12) TMI 531 - KERALA HIGH COURT held that used vehicles, even if it has run only negligible distances are to be categorized as 'used personal effects' - the facts in the present appeal is similar if not almost identical to the facts in the above referred decision, except for the change in place from Puthuchery to Coimbatore. Appeal dismissed.
Issues:
Detention of 'RANGE ROVER' motor vehicle for transportation without E-way bill under Kerala Goods and Service Tax Rules, 2017. Analysis: The judgment by the High Court of Kerala involved a case where the respondents challenged the detention of a 'RANGE ROVER' motor vehicle during transportation from Coimbatore to Thiruvananthapuram without an E-way bill as required under Rule 138 of the Kerala Goods and Service Tax Rules, 2017. The learned Single Judge allowed the writ petition, quashing the detention notices. The Department appealed this decision. The High Court, in its analysis, noted that goods classified as used personal and household effects are exempted from the E-way bill requirement under Rule 138(14)(a) of the Kerala Goods and Services Tax Rules, 2017. The 2nd respondent had purchased the vehicle after paying IGST, obtained temporary registration, and motor vehicle insurance. The vehicle was being transported by the 2nd respondent from Coimbatore to Thiruvananthapuram when it was detained for not having an E-way bill, despite having run only 43 Kms. Referring to a previous decision in KUN Motor Company's case, the High Court emphasized that the incidence of tax is on the supply, not the nature of transport. The Court agreed with the earlier ruling that used vehicles, even if they have run negligible distances, are considered 'used personal effects' and not subject to taxable transactions during transportation. The Court found the facts of the present case similar to the previous decision, except for the change in the place of origin. In conclusion, the High Court dismissed the appeal, stating that there was no merit in challenging the detention of the vehicle without an E-way bill during transportation. The judgment upheld the exemption for used personal effects from the E-way bill requirement under the Kerala Goods and Services Tax Rules, 2017, based on the precedent set in the KUN Motor Company's case.
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