The Gujarat High Court has recently set aside the detention order of trucks of Shree Ram Road Carriers, as the demand and detention was based merely on assumption of tax evasion from expiry of E-Way Bill.
The authority of the respondent demanding the sum of Rs. 7.53 Lakh as demand of tax and penalty was challenged by the petitioner through Advocate Hemal Shah.
As per the submission of the petitioner, Shree Govind Alloys, the truck had remained in non-motorable condition and thus, the goods which were to be delivered on or before 17.10.2022 could not be delivered in time.
At the time of inspection, because of the expiration of the e-Way bill number, the officer seized the entire truck along with the impugned goods. The petitioner had been issued GST Form MOV No.1,2,6 and 7 where he had been called upon and eventually the impugned order was passed demanding the tax and penalty.
The Assistant Government Pleader Pooja Ashar appeared for the State and justified the detention of the goods bearing invoice value of almost 25 Lakh Rupees along with the truck on the ground that e-Way bill had expired 41 hours before the time of interception.
The Division Bench of Justice Sonia Gokani and Justice Manuna M Bhatt observed that the conduct of petitioner appeared to be bonafide and without establishing any fraudulent intention.
Resultantly, the petition for release of goods and the truck was allowed, while the impugned order of demand was set aside.
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