vehicle & goods be detained
Case Title | M/s Transways India Transport vs Joint Commissioner. |
Court | Karnataka High Court |
Honorable Judges | Justice M.I.Arun |
Citation | 2022 (6) GSTPanacea 237 HC Karnataka W.P.No. 7226 /2022 |
Judgement Date | 23-June-2022 |
Council for Petitioner | Aravind Kamath |
Council for Respondent | K.Hemakumar |
Section | Rule 138A & Section 129 CGST 2017 |
In Favour of | Favour of Assessee |
The Karnataka High Court bench of Justice M.I.Arun has held that diversion that might have taken place due to human error and it cannot be definitely concluded that diversion was deliberate.Hence impugned orders set aside
FACTS OF THE CASE
Petitioner is a transporter operating under a valid GST registration number. It was entrusted with the transportation of stainless steel coils and plates from Mumbai to Bengaluru
A lorry belonging to the petitioner was carrying four consignments out of which two consignments had to be delivered at Peenya Industrial area at Peenya, one consignment at new Kalasipalyam and another consignment at S.P.Road cross, Bengaluru
It had necessary permission to move towards Peenya Industrial area and the driver of the lorry on 02.12.2021, at about 11.00 p.m., by mistake took a wrong turn towards Bommasandra Industrial area instead of Peenya Industrial area and before he realized the error committed by him, the authorities checked the vehicle and seized the same
Petitioner claim that it was a human error and a bona fide mistake and there was no intention to divert the goods elsewhere. It is submitted that the driver has given an affidavit in this regard and the purchasers to whom the consignments had to be delivered.
The said vehicle was stopped and checked for documents at Jigani link road, Bommasandra Industrial area. The driver had necessary documents to drive the vehicle towards Peenya, S.P.Road and new kalasipalyam but not towards Bommasandra Industrial area
For the said reason, by considering that the goods were being moved without documents, the provisions of Rule 138A of the Central Goods and Services Tax Rules, 2017 and Section 129 of the Central Goods and Services Tax Act, 2017 have been invoked and penalty has been imposed by way of impugned order. Aggrieved by the same, the instant writ petition is filed.
vehicle & goods be detained
COURT HELD
Considering the facts as recorded, held that there may be chances of diversion that might have taken place due to human error and it cannot be definitely concluded that diversion was deliberate more so when the driver of the vehicle has filed an affidavit explaining the reasons and the intended purchasers have also confirmed that they were supposed to receive the said goods.
The impugned orders passed by respondent the writ petition is hereby set aside. The respondents are directed to release the vehicle and the goods detained pursuant to the said orders.
vehicle & goods be detained
ANALYSIS OF THE JUDGEMENT
Admittedly, the driver of the vehicle was carrying required E-way bills and tax invoices to deliver goods to Peenya Industrial area, Kalasipalyam and S.P.Road. The driver instead of taking a right turn at Hebbal junction and move towards Peenya Industrial area, he has taken a left turn and has moved towards Bommasandra Industrial area. The incident has happened at late night.
Diversion that might have taken place due to human error and it cannot be definitely concluded that diversion was deliberate more so when the driver of the vehicle has filed an affidavit explaining the reasons and the intended purchasers have also confirmed that they were supposed to receive the said goods.
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