Kerala HC directs GST Dept to release detained Goods as the Discrepancy in E-Way Bill was a Clerical Error [Read Judgment]

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In a recent ruling, the Kerala High Court directed the State GST officials to consider release of goods in view of the CBIC Circular No. 64/38/2018-GST, dated 14th September 2018 since the discrepancy in the E-Way Bill was due to a typographical error.

The petitioners’ sole grievance was that while generating e-way bill for the purpose of a consignment to Uttarakhand, the e-way bill the distance between Kerala and the destination at Uttarakhand was shown as 280 Kms, instead of 2800 Kms. On the way, the departmental officials inspected the vehicle and detained goods. The petitioner couldn’t rectify the error by invoking Rule 138(9) of the CGST Rules since 24 hours had already been expired.

Before the High Court, the petitioners urged that this is a typographical error and the petitioner noticed it only when the officials intercepted the goods and inspected the documents.

On behalf of the department, it was contended that the authority concerned in Kerala, could either permit the petitioner to generate a new e-way bill or certify that the error is clerical. In reply, the Standing Counsel submitted that since the entire system is online, the 7 th respondent could not correct the error, at this stage. He also submits that there is no provision in the Rules for such correction, either.

The Standing Counsel also submitted that a certificate, as sought by the petitioner from the 7th respondent, is also not possible because the Authority has no such power conferred on him. At any rate, he too felt that the mistake is genuine, evident, and needs correction, in the interest of justice.

The petitioners further contended that the produce being transported is natural rubber and it has been in detention for the past ten days. As its shelf life is very short, any further delay in the matter will render the whole consignment worthless.

Allowing the petition, Justice Dama Seshadri Naidu observed that “Indeed, the Central Board of Indirect Taxes and Customs has come across many minor discrepancies in the e-way bills, resulting in summary detention of the goods. Then, it has issued this circular. I reckon the distance between Kerala and Uttarakhand is a matter of record and thus verifiable. As I have already noted, the eway bill showed the distance as 280 Kms, instead of 2800 Kms—one zero missing. This cannot be anything other than a typographical error, and a minor at that. Under these circumstances, I hold that the 11th respondent will consider the petitioner’s request for release in terms of the circular, expeditiously.”

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