While upholding the constitutionality of Rule 140 of the CGST/SGST Rules, a division bench of the Kerala High Court held that the goods seized for want of Part-B of E-Way Bill can be released on furnishing bank guarantee and a simple bond without sureties.
The GST department detained the goods of the petitioners on the ground that the Part-B of the E-Way Bill was not uploaded. The petitioners pleaded before the Court to declare Rule 140 of the CGST/SGST Rules as violative of Article 301 of the Constitution. The petitioners were aggrieved with the collection of security in the form of simple bond for the value of the goods and bank guarantee equivalent to the amount of applicable tax, interest and penalty, which is a mandatory condition for the release of the goods detained under Section 129(3) of the CGST Act, 2017.
Justices Vinod Chandran and Ashok Menon has held that “The defect found was that the intercepted vehicle was carrying an invalid e-way bill. The document was categorised as invalid for reason of Part-B of the bill having not been uploaded and not accompanying the goods. The learned Counsel for the appellant submits that Part-B was uploaded even before the notice and order, on 10.09.2018. We notice that the detention itself was on 09.09.2018 and the subsequent uploading of the Part-B would not efface the defect as pointed out by the Detaining Officer. In such circumstances, we find that the judgment of the learned Single Judge, insofar as refusing the release of the vehicle on the basis of the judgment in W.P.(C) No.26986/2018, produced as Annexure I, is perfectly in order. We, hence, direct that the vehicle with the goods be released to the appellant on furnishing a bank guarantee for tax and penalty found due and a simple bond without sureties for the value of the goods in the form as prescribed under Rule 140(1) of the CGST Rules.”To Read the full text of the Order CLICK HERE