The High Court (HC) of Madras set aside the order demanding a penalty since the expiry of the E-way bill does not create scope for evasion and there is revenue loss.
Mr B. Raveendran, counsel for the petitioner and Mr T.N.C. Kaushik Advocate appeared on behalf of both respondents.
A truck of the petitioner, Thiruvannamalaiyar Transportcarrying a consignment described as ‘Angles’ from Gummidipoondi to Ranipet was intercepted in the wee hours and made detaining the truck with the consignment based on the expiry of e-way bill.
It was submitted that Rule 138(10), the second and third provisosprovide for the extension of validity of the period of the e-way bill within 8 hours from the time of expiry. Further submitted that on interception and detention, the portal was blocked and therefore, the extension of the e-way bill could not be done through the writ petitioner had a good four hours from the time of detention.
The impugned proceedings have been made under Section 129(3) of the C-G&ST Actread with State/Union Territory G & ST Act besides Section 20 of Integrated G & T Act’ for convenience.
Justice M Sundar observed that the driver of the truck carrying the consignment did not mention breakdown and repair, though there was no mention ofthe portal being blocked, it has been mentioned that no steps have been taken for extending the Eway bill.
Further observed that there would have been no revenue loss to the respondent / State if the truck had reached the destination without being intercepted. Further viewed that the CGST /SGST /IGST (if interstate supply) would have suffered at the hands of the manufacturer or distributor.
It was held by the Court that mere delivery of the goods at a place other than those mentioned in the documents would not render the transaction as an evasion or abetment of evasion. The impugned proceedings dated 02.12.2022 was set aside by the court with a directive that the writ petitioner shall pay a penalty of Rs.5,000/- (Rupees Five Thousand only).
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