No Intention to Evade GST since E-Way Bill Expired due to Break Down of Vehicle: Allahabad HC Quashes Seizure Memo [Read Order]

A Single Bench of the Allahabad High Court quashed seizure memo as there was no intention on the side of the petitioner, to evade Goods and Service Tax (GST) since E-Way Bill expired due to the break down of the vehicle.

The petitioner, M/s Rateria Laminators Pvt.Ltd, made inward supply for movement of goods from Auraiya Uttar Pradesh to Jalpaiguri, West Bengal two E-way Bills were generated having validity upto 12.3.2023. A GR was also prepared on the same day i.e. 6.3.2023 in which invoice numbers and E-way bills have specifically been mentioned and on way the driver of the vehicle fell ill and there was also some break down of the vehicle, therefore onwards journey could not be continued to reach the destination before 12.3.2023.

The Vehicle was intercepted and Form GST MOV04 was prepared on 14.3.2023. Thereafter Form GST MOV01 was prepared on 23.3.2023 and consequently an order was passed on the same day that the goods in question are being carried without proper documents as E-way bills have expired.

The Counsel for the petitioner submitted that pursuant to the notice as to under what circumstances the vehicle could not reach its destination before expiry of E-way bills which was valid upto 12.3.2023, the petitioner submitted its reply explaining the reason that due to medical exigency the driver fell ill and due to some break down in the vehicle the goods could not reach its destination before 12.3.2023.

It was further submitted that since the driver of the vehicle was not aware of GST law, he could not apply for extension of the E-way bills before its expiry.

The Counsel for the respondent submitted that neither any material was brought on record to show that the driver was ill and was under medical care nor any material was brought on record about the break down of the truck and the same got repaired before the authorities below, therefore, the authorities were justified in passing the impugned orders and prayed for the dismissal of the writ petition.

The Court of Justice Piyush Agarwal observed that “Since the petitioner has submitted its reply taking the stand that there was break down of the vehicle and the driver fell ill but no reason has been assigned by any of the authorities in the impugned orders for disbelieving the same.”

“In view of the facts and circumstances of the case and since the authorities below have not recorded any findings with regard to the submissions made by the petitioner the impugned orders as well as seizure memo dated 23.7.2023 could not be sustained in the eye of law and are hereby quashed” the Court noted.

To Read the full text of the Order CLICK HERE

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