GST
TRT-2025-
Madras High Court
Date:-13-12-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 13 December 2022
Facts –
- The Petitioner, Tvl.Thiruvannamalaiyar Transport, was in consignment described as 'Angles' from Gummidipoondi to Ranipet carried on a truck bearing Registration No.TN28-AQ-9203. The same was intercepted in the wee hours.
- After Interception the truck was detained on the ground that e-way bill had expired.
Issue –
- Whether the detention of truck on expiry of e-way bill is in order?
Order –
- The Hon’ble High Court observed that there would have been no revenue loss to the respondent / State if the truck had reached the destination without being intercepted. As per the Circular No.10/2019,Q1/17253/2019 which pertains to enforcement of G & ST and what has been described as 'a new approach' to be followed with effect from 01.06.2019.
- It is reiterated and clearly articulated in Example 2 that the expiry of E-way bill does not create any scope for evasion. Absent evasion, there can be no revenue loss. It has been made clear that in cases of such nature penalty upto Rs.5,000/- per act shall be levied. This may have to be read with Section 125 of CGST Act, which is residuary in nature qua penalties which do not find a place in the adumbration of (xxi) categories in sub-section (1) of Section 122.
- In the light of the narrative, discussion and dispositive reasoning thus far, on a demurrer, assuming there was no breakdown and assuming the portal was active, the maximum penalty would be Rs.5,000/- qua paragraph 10 of said Circular and therefore as a sequitur, the impugned order is set aside with a directive that the writ petitioner shall pay a penalty of Rs.5,000/-
- On payment of penalty in the aforesaid manner latest by tomorrow, the second respondent shall release the truck bearing Registration No.TN28-AQ-9203 forthwith with the consignment.
- Writ petition disposed of.
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