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TMI Blog2023 (6) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. Since 05.03.2023 was a sunday and the vehicle was, ostensibly, in a remote place, no mechanic was available. On 06.03.2023, the vehicle is stated to have been repaired and made ready for transport. 3. At that time, the vehicle was intercepted by the Roving Squad of the Income-Tax Department. The documentation available was handed over to the officers, upon perusal of which, it was found that the E-Way bill had expired at 12.00 a.m. on 05.03.2023. The interception of the vehicle was at 10.30 a.m. on 06.03.2023. 4. Chapter XVI of the Central Goods and Service Tax Rules, 2017 deals with E-Way Rules (in short 'Rules'). Rule 138 provides for 'information to be furnished prior to commencement of goods and the generation of E Way Bill'. The third proviso to Sub-rule 10 of Rule 138 states that the validity of the E-Way Bill may be extended within eight hours from the time of its expiry. 5. In the present case, the E-Way Bill expired on 12.00 a.m on 05.03.2023. Thus, extension of the same should have been sought within eight hours, which is prior to 8.00 a.m on 06.03.2023. However, the vehicle was intercepted at 10.00 a.m. with an expired e-way bill. 6. Admittedly, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was inspected under the provisions of sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 read with sub-section (3) of section 68 of the State/Union territory Goods and Services Tax Act or under section 20 of the Integrated Goods and Services tax Act, 2017 read with sub-section (3) of section 68 of the Central Goods and services Tax Act 2017, on 06.03.2023 and the following discrepancy was noticed. Goods (Petrol Power Weeder) moved from Kothapur to Gingee. On verification, E-way bill was expired on 05.03.2023 @ 11.59 PM. Hence it is defect. Goods detained with vehicle and GDN issued. 3. In view of the above, the goods and the conveyance used for the movement of goods were detained under sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 read with sub-section (3) of section 68 of the State/Union Territory Goods and Services Tax Act or under section 20 of the Integrated Goods and Services Tax Act read with sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 by issuing and order of detention in FORM GST MOV-06 and the same was served on the person in charge of the conveyance on 06.03.2023. 4. Sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any scope of tax evasion. (iii) Further they are dealing in agricultural equipments only for that no E-way bill required for the consignment of goods and requested to release the vehicle. 8.The explanations filed by the consignee Tvl.Ajay Agency, Thiruvannamalai were perused and not acceptable for the following reason. (i) The generation of E-way bill - Part-A and Part-B details were updated by the consignor Tvl. Kirloskar Oil Enginees Ltd., Khadki, Pune having GSTIN.27AADCK5714H1ZK. They know very well about the time period of E-way bill for unloading the goods at delivery place. Also they know about the validity of Eway bill may be extended within 8 hours from the time of its expiry. But the consignor should not extend the time of E-way bill. Also the Roving Squad Officials detained the vehicle on expiry of E-way bill (i.e.) after 10 hours. (ii) The consignee Tvl. Ajay Agency cited the decision of Tvl. Thiruvannamalaiyar Transport Vs. Deputy State Tax Officer, Madras High Court is not applicable for this case because the goods detained by the Roving Squad Officials related to Tvl. Thiruvannamalaiyar Transport is that on expiry of E-way bill the officials detained the veh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to delay in making delivery at various locations. The expiry of E-Way bill does not create any scope for evasion." 10. Learned counsel specifically draws attention to Example 2 above to state that the expiry of the E-Way Bill in this case may be explained, taking support from that illustration. However, that illustration is of no assistance to the petitioner since the transaction in question is distinguishable on facts. In that case the conveyance carrying fertilizers was effecting delivery at various locations as per the directions of the Department of Agriculture. In the present case, the transaction in question is as between private parties. 11. The illustration provides for expiry of E-Way Bill due to delay in making delivery at various locations. In the present case, the transaction is an end-to-end transaction and there are no intermittent deliveries that are contemplated. That apart, the goods in that case comprised fertilisers that are admittedly exempt whereas in the present case the consignment comprises machinery, a 'petrol power weeder', that, according to the respondents is taxable, though such a conclusion is to be tested and decided in appropriate proceedings. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to file returns for two or more tax periods this instruction would not apply and the vehicles of such tax payers may be detained for further action, wherever appropriate. 3. The above para is modified as follows: 9 (A). CIRCUMSTANCES WHERE NO PENALTY SHALL BE LEVIED BY THE ROVING SQUAD: i)Where the amount involved in the offence is less than Rupees Five Thousand. ii) Where the issue relates to rate of tax, classification of goods, place of supply disputes, valuation of goods etc., instead of levying tax and penalty on the spot, these types of cases shall be referred to the assessment circle concerned for further action, without detaining the goods and conveyance. However, in respect of newly registered tax payers where the roving squad officers are able to establish that the tax payer had failed to file returns for two or more tax periods this instruction would not apply and the vehicles of such tax payers may be detained for further action, wherever appropriate. 9(B). CIRCUMSTANCES WHERE PENALTY OF Rs. 500/- SHALL BE LEVIED: i)In case a consignment of goods is accompanied with an invoice or any other specified document and also an e-way bill, proceedings under s ..... 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