2021 (9) TMI 429 - HC - GST

Detention of goods alongwith the vehicle - detention on the ground that in the e-way bill the petitioner had deliberately misdeclared the vehicle as ODC (Open Dimension Cargo) - ODC categorization apply to extremely slow moving vehicles - Validity period of E-Way bill - HELD THAT - The movement of the vehicle had started from Guwahati on 19.08.2021 and had already reached Churaibari check-post on 21.08.2021 when it was detained. Had the vehicle not been stopped, the delivery at Agartala would have taken place latest by 22.08.2021 which in any case is the normal validity period of e-way bills considering the distance between the point of origin and destination. The goods and vehicle must be released on certain conditions - Petition allowed.

Summary

Issues: Misdeclaration in e-way bill leading to detention of goods, demand for payment of taxes with penalties, release of goods and vehicle, conditions for release.

The judgment dealt with a case where the petitioner, engaged in the business of providing construction materials, faced detention of goods due to misdeclaration in the e-way bill. The petitioner had sold Bitumen-vg-30 and paid GST, but the goods were detained at a check-post for allegedly misdeclaring the vehicle type in the e-way bill to extend its validity. The tax authority demanded payment of Central and State GSTs with penalties. The petitioner contended that the misdeclaration was an error without any intention to exploit the e-way bill's validity period. The court acknowledged the need for further inquiry but deemed the demand for immediate tax payment as impermissible. The judgment emphasized allowing the competent authority to proceed with the inquiry while releasing the goods and vehicle under specified conditions.

Regarding the release of goods and vehicle, the court ordered the petitioner to deposit 50% of the disputed amount, rounded off to a specific sum, with the tax department as per Section 49 of the State GST Act. This deposit was made subject to the final outcome of the adjudication proceedings. The remaining 50% of the disputed amount was to be secured by the petitioner through a bond to pay if found liable. Once the petitioner fulfilled these conditions, the goods and vehicle were to be released immediately. The competent authority was tasked with making a final determination on the petitioner's tax/penalty liability, with any deposited amount to be returned if no liability was established. The petition was disposed of accordingly, with any pending applications also being resolved.