Petitioner | Podder & Podder Industries (P) Ltd. |
Respondent | State of Tripura & Ors. |
Decision By | Tripura High Court |
Date Of Order Or Judgement | 29-March-2022
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Citation No. | W.P. (C) No. 285 of 2022 2022 (3) GSTPanacea 53 HC Tripura |
Hon’ble Judge | Justice S. G. Chattopadhyay |
Decision | In Favour of Assessee |
Expiry of E-way Bill-When the transaction is between two registered dealers and all the relevant documents were available, the genuineness of the transaction is not in dispute, the vehicle carrying such goods ought to be permitted to enter the State and continue with such carrying subject to an opportunity to the buyer or seller to appear before the assessing officer and make necessary compliance
Expiry of E-way Bill-Facts of the Case
Expiry of E-way Bill-Writ petition has come to be filed by the petitioner-Podder and Podder Industries Pvt. Ltd. which is engaged in the business of selling of construction machinery.
It is submitted that the petitioner sold certain construction materials to a buyer in Agartala from Silchar, Assam.
That the vehicle was carrying all valid documents pertaining to machinery including the E-way bill valid up to 17.03.2022 however due to some technical problem in the vehicle carrying the goods, the vehicle reached at Churaibari on 18.03.2022 and by that time the E-will bill has expired.
For this reason, the vehicle was detained and ultimately on 18-3-2022 the driver in charge of the vehicle was informed with a direction of seizure of both the vehicle as well as the goods concerned.
Hence the present writ petition has been filed.
Argument Before Court
Expiry of E-way Bill-Petitioner’s Contention
Expiry of E-way Bill-It was submitted on the behalf of the petitioner that the said E-way bill has been issued by the buyer who is a registered contractor in the state of Tripura and the equipment has been purchased by the buyer for performing a contractual obligation to the State of Tripura under a contract entered into by him.
The Petitioner further submitting that the denial of entry of the vehicle in the State of Tripura amounts to the impediment on the free flow of goods, informed that they had only 8-hour window as per Rule 138 (10) of the CGST Rules, 2017 any extension thereof.
Therefore, The seizure of vehicle at the entry point of the State has caused an impediment on the free flow of goods and services with the Union of India.
Expiry of E-way Bill-Respondent’s Argument
Expiry of E-way Bill-Respondent explained that We are constraint to note that any impact on the free-flow of goods and services (bona fide) ought to be encouraged and not discouraged since the free-flow and movement of goods and services throughout the Union of India is meant to be for the purpose of development of the nation. No doubt the rule making authorities have the authority to put conditions such as requirement of an e-way bill to cover the goods that have been transported. However, it must not be lost sight of the fact that an e-way bill has supplied to cover the goods under the transit by a registered dealer under the GST Act.
Learned Government Advocate when queries as to whether there was any doubt about the genuinity of the transaction is concerned, fairy admitted that there is at present no question or any doubt over the genuineness of the transaction.
It was submitted on the behalf of the respondents that the authorities were not left with any option other than to stop and seize the vehicle along with goods, as the petitioner did not seek extension as required under law and the date of entry of vehicle in the State was 18.03.2022 which was after the expiry of E-way bill i.e., 17.03.2022.
Tripura High Court Held
Expiry of E-way Bill-The Hon’ble Court after considering the submissions made from the both sides, facts of the case and the law on the subject, observed that there was no doubt regarding the genuineness of the transaction and the said fact has been admitted on behalf of the respondents.
The Hon’ble Court after considering the facts of the case, held that when the transaction is between two registered dealers and all the relevant documents were available, the genuineness of the transaction is not in dispute, the vehicle carrying such goods ought to be permitted to enter the State and continue with such carrying subject to an opportunity to the buyer or seller to appear before the assessing officer and make necessary compliance as required.
Further, it was held that when the transaction admittedly is between the two registered dealers located in two different States, there is no justification for stoppage of vehicle carrying goods.
The Hon’ble Court held that any hindrance in the movement of goods or fray amounts to an obstacle of the development of the nation.
The Hon’ble Court took note of the fact that due to the stoppage the buyer is prevented from using the machinery for the contract entered into by him with the State.
Therefore, to enhance the ease of business it is also necessary for the rule making authority to reconsider in their best wisdom whether the requirement of fixation of the period of time in the e-way bill is at all appropriate requirement in the circumstances?
Accordingly, writ petition is disposed of directing the petitioner to appear before the check gate officer and to submit an undertaking or bond before the check gate officer and the check gate officer shall release the vehicle as well as the goods by accepting the undertaking or bond and such information as may be appropriate be provided to the assessing officer of both the seller and buyer who may be at liberty to initiate appropriate action against the registered dealer who shall be duty bound in law to make such compliances failing which they shall be liable for whatever consequences law has prescribed.
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