The Tripura High Court directed the release of Ambulances detained for not having an E-way bill under the GST Act.
The Petitioner, East India InfoTech Pvt. Ltd. is a private limited company and has challenged the action of the respondent of seizing and detaining an ambulance van which the petitioner had purchased for its own business purpose and was being transported by road from Bilaspur, Chattisgarh to Agartala. Two more ambulances of the petitioner were similarly detained by the respondent, on the same day at Churaibari check post, on the ground that the vehicles did not carry e-way bills. The case of the petitioner is that the vehicles are purchased not for resale but for the own use and business purpose of the petitioner and in which case, there was no necessity of regenerating an e-way bill.
The petitioner contended that all applicable taxes on these inter-State sales have been paid. Detention and seizure of the vehicles are thus without jurisdiction. The petitioner has produced documents in support of these averments.
On the other hand, senior Government Advocate Mr. P K Dhar submitted that the petitioner has alternative remedy. The respondent has issued a notice, on 21st July 2021, upon the petitioner why unpaid taxes with penalties not be recovered. The petitioner has not filed a reply to the show case notice. The petitioner, therefore, be relegated to the departmental authority.
The division bench of Chief Justice Akil Kureshi Justice S G Chattopadhyay and Justice considered the prime defence of the petitioner that he is not a registered dealer nor is he dealing in purchase and sale of vehicles and the ambulances have been purchased by the petitioner only for its own use and purpose since the petitioner wants to start a business of proving ambulance service, it would not be appropriate to allow further detention of the vehicles. Pending final assessment and subject to certain conditions these vehicles can be released.
“The Assessing Officer shall thereupon pass order in relation to these show cause notices, in accordance with law, after considering the replies of the petitioner. If the petitioner requests for personal hearing of the authorised representative, the same may also be granted,” the court directed.
The court added that in the meantime, the vehicles shall be released as soon as the petitioner furnishes unconditional Bank guarantee to the tune of 25% of the possible tax and penalties, as indicated in the show cause notices and furnishing a bond for the remaining 75% of the values.
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