Order date – 27 July 2022

Facts – 

• The Petitioner, H.B.L. Power Systems Ltd, is involved in the business of manufacturing, sale, supply and installation of renewable energy systems, batteries etc in the state of UP. 
• Modern Coach Factory, Raebareli, which is a Government of India undertaking, has placed purchase order upon the Hyderabad Office of the petitioner on 27.12.2017 for purchase of Battery Sets etc. The said supply was to be made in four lots.
• The Petitioner for obtaining E-way bill, uploaded details on the portal of the G.S.T. and generated the E-way bill for the goods.
• When the goods reached at Lucknow, it was intercepted by Commercial Tax Department on 08.03.2018 and a seizure order in purported exercise of powers under Section 129 (1) of the U.P. G.S.T. Act.
• The State was of the view that once the Central Government had suspended its E-way bill, the requirement of the State E-way bill stood revived automatically and as the petitioner was not carrying the State E-way bill, the seizure order came to be passed.
• Aggrieved the petitioner filed the petition.

Issue – 

• Whether the seizure order passed by the department is maintainable?

Order – 

• The High court observed that the whole basis based upon which the order has been passed that the petitioner was not carrying the E-way bill as are required under the U.P. G.S.T. Rules, looses significance, as the petitioner were not liable to be taxed under the U.P. G.S.T. Act being an inter-state supply 
• Further, the requirement of E-way bill was recommended to be not enforced till 31st March, 2018, in view of the recommendation of the G.S.T. Council. 
• Thus, on both the reasonings, the demand as raised in the order dated 19.03.2018 were not sustainable and were set aside. 
• Thus the writ petition was allowed with directions to refund the 10% amount deposited by the petitioner while preferring the appeal, in accordance with law, within a period of two months from today. The bank guarantee given by the petitioner shall also be released to him.