Order Date – 27 February 2025

Parties: Kitchen Equipments Manufacturing Co Vs Additional Commissioner Grade 2 (Appeal) And Another

Facts –

• The Petitioner,  Kitchen Equipments Manufacturing Co, sent goods from Ghaziabad to New Delhi for the purpose of exhibition and after conclusion of the event, the same was returned to Ghaziabad.
• Due to inadvertence or human error, the place of dispatch in the E-way bill was wrongly mentioned as Ghaziabad in place of New Delhi. The goods were intercepted on the ground that place of loading was mentioned as Ghaziabad in stead of New Delhi.
• It was contented that once the goods in question are not taxable, the proceedings under Section 29 of the Act cannot be initiated against the petitioner.

Issue –

• Whether the detention order passed on the ground of mismatch in e-way bill is valid?

Order –

• The Single Bench of Hon’ble High Court observed that the record shows that the authorities have not recorded any finding that the petitioner had intention to evade payment of tax, which is mandatory under the Act.
• This Court in the case of  Shyam Sel  has specifically held that in absence of any finding with regard to evasion of payment of tax, the proceedings cannot be justified. Further, the goods in question are not disputed to be taxable goods as the same were accompanied with the genuine delivery challan.
• In view of the facts as stated above, the proceedings cannot be justified in the eyes of law. The writ petition is allowed.