Order date – 01 December 2022

Facts –

• The Petitioner Shree Govind Alloys Pvt. Ltd. is a private limited company, a transport authority. 
• The appellant was demanded a sum of Rs. 7,53,364/- as a demand of tax and under section 129(3) of the Central Goods & Services Tax Act, 2017 and goods were seized.
• Being aggrieve the appellant had filed an appeal.

Issue –

• Whether the demand of tax under and seizure of goods are in order?

Order –

• The Hon’ble High Court observed Section 129 and finds that the e-Way Bill had expired 41 hours before the release of goods of conveyance and transit through the authority concerned.
• The Court also noticed that the detention is also on the ground that the goods are of expiration of the e-Way bill number, which had expired during the transit and the same cannot be the ground for detaining and seizure of M.S. Billet along with the vehicle truck.
• The Court relied on the decision in the case of Govind Tobacco Manufacturing Co. vs. State of U.P wherein it was held that as there is expiry of e-Way bill on transit, the seizure of said vehicle and the goods is not permissible under the law. Also in the case before the High Court of Madhya Pradesh at Jabalpur in M/s. Daya Shaker Singh vs State of Madhya Pradesh passed in Writ Petition on 10.08.2022, where also the Court had intervened considering the fact that the respondent could not establish any element of evasion of tax with fraudulent intent or negligence on the part of the petitioner. Delay was of almost 4 ½ hours before the e-Way bill could expire.
• It appeared to be bona fide and without establishing any fraudulent intention. Here also what is found is that there is no fraudulent intention for this to happen.
• Writ Petition allowed.