2022 (9) TMI 1201 - HC - GST

Detention of goods alongwith the vehicle - goods were not accompanied by the valid e-way bill - transaction being an export transaction - wilful intention on the part of the appellants not to generate any e-way bill, or not - Section 129 of GST Act - HELD THAT - On perusal of the order passed by the first appellate authority, it is found that such exercise has not been done. Therefore, one more opportunity can be granted to the appellants to show their bona fides. This appeal as well as the writ petition are disposed of and the order passed by the appellate authority dated 30th November, 2021 is set aside and the matter stands remanded to the appellate authority. The appeal shall stand restored in the file of the appellate authority and the appellants shall appear before the appellate authority and produce all documents to establish their case that no tax is leviable and there was no willful intention on their part to evade payment of tax so as to attract penalty, after affording an opportunity of personal hearing. Appeal disposed off.

Summary

Issues:
1. Application for condonation of delay in filing the appeal.
2. Appeal against an order declining interim relief and directing affidavit-in-opposition.
3. Allegations of goods interception without a valid e-way bill for export.
4. Grounds for appeal including no tax liability in export transaction and lack of wilful intention.
5. Examination of conduct by adjudicating authority and appellate authority.
6. Setting aside the order and remanding the matter to the appellate authority for reconsideration.
7. Directions for the appellate authority to consider all aspects and pass a reasoned order within a specified timeframe.

Issue 1: Application for Condonation of Delay
The application was filed to condone a delay of 16 days in filing the appeal. After hearing both parties, the Court was satisfied with the reasons provided in the affidavit supporting the application, and consequently, the delay was condoned, allowing the application.

Issue 2: Appeal Against Order Declining Interim Relief
The appeal was directed against an order where the Single Bench declined to grant interim relief and instructed the filing of an affidavit-in-opposition. The appellants contested this decision, stating that the goods intercepted for export lacked a valid e-way bill. The appellants argued that as it was an export transaction, no tax should be levied, and there was no intentional evasion of generating the e-way bill. The Court found that the adjudicating authority did not thoroughly examine these contentions and decided to remand the matter to the appellate authority for a reevaluation.

Issue 3: Allegations of Goods Interception
The goods meant for export were seized due to the absence of a valid e-way bill. The appellants claimed that the e-way bill was generated shortly after the interception, attributing the oversight to the driver's lack of awareness. The Court acknowledged the appellants' arguments regarding the export nature of the transaction and the absence of wilful intent to evade tax, prompting a reconsideration by the appellate authority.

Issue 4: Examination of Conduct
The Court noted that the conduct of the appellants needed further scrutiny, especially regarding the penalty imposed under Section 129 of the Act. It was observed that the appellate authority had not adequately assessed the appellants' contentions, leading to the decision to grant another opportunity for the appellants to demonstrate their bona fides.

Issue 5: Setting Aside the Order and Remanding
The Court set aside the previous order and remanded the matter to the appellate authority for a fresh review. The appellate authority was directed to consider all aspects, including the tax liability in the export transaction and the absence of wilful intention to evade tax, and to provide a reasoned decision within 12 weeks from the date of the Court's order.

Issue 6: Directions to the Appellate Authority
The appellate authority was instructed to thoroughly evaluate the case, considering all relevant factors and legal provisions. The Court clarified that it had not delved into the merits of the matter, leaving all issues for the appellate authority to address. The appeal and the connected application were disposed of with no order as to costs.

This judgment primarily dealt with the condonation of delay in filing the appeal, an appeal against the rejection of interim relief, allegations of goods interception without a valid e-way bill for export, examination of the appellants' conduct, setting aside the previous order, and remanding the matter to the appellate authority for a comprehensive review. The Court emphasized the need for a detailed assessment by the appellate authority, considering all aspects and legal provisions, to reach a reasoned decision within a specified timeframe.