In a recent decision, the Calcutta High Court observed that there is no requirement in law to verify the reason for transporting goods in a vehicle without a proper e-way bill.
The petitioner, Asian Switchgear Private Limited, is aggrieved by the order passed by the adjudicating authority subsequently affirmed by the appellate authority imposing penalty under Section 129(3) of the West Bengal Goods and Services Tax Act, 2017. The prayer has been made for setting aside the aforesaid orders with a direction for a refund of the penalty amount.
The e-way bill in question was generated on 10th June 2022 and the same was valid up to 21st June 2022. The goods which were being transported against the aforesaid e-way bill were intercepted on 19th June 2022, from a different conveyance, not mentioned in the e-way bill. On-demand, the person in charge of the goods and conveyance failed to produce any document in support of the said goods being transported by a different conveyance.
As there was a failure on the part of the person in charge to produce documents in support of the movement of the goods, the goods were seized and later released on payment of penalty under Section 129(3) of the West Bengal Goods and Services Tax Act, 2017.
The Counsel for the petitioner contended that as the vehicle in which the goods were originally loaded for transportation and the e-way bill generated suffered a breakdown in the course of the journey, accordingly, the person in charge had to arrange for a different conveyance for transporting the said goods.
The Counsel further argued that as the e-way bill was still valid on the date and time of interception of the goods, accordingly, penalty under Section 129(3) of the Act ought not to have been imposed and that fair opportunity was not provided to the petitioner either at the adjudication stage or before the appellate forum.
The Court of Justice Amrita Sinha observed that “The moment the goods are unloaded from the vehicle in respect of which e-way bill was generated and loaded in a different vehicle without any e-way bill a statutory breach is committed, liable to be dealt with in accordance with the statute. There is no requirement in law to verify the reason for transporting goods in a vehicle without a proper e-way bill.”
The Bench further noted that the petitioner admits that the vehicle in which the goods stood transferred for being transported allegedly to the pre-recorded destination, did not have an e-way bill and that the Court is convinced that provision of Section 129 will be attracted in such a situation and has been rightly invoked by the authority.
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