Order date: 18 January 2023

Parties: ORSON HOLDINGS COMPANY LIMITED & 1 other vs UNION OF INDIA & 2 other

Facts:

• The Petitioner, ORSON HOLDINGS COMPANY LIMITED & 1 other(s), is a company situated at Howrah, West Bengal and the place of delivery of goods was Jamnagar, Gujarat and in transit, this e-Way bill has expired. Goods of the said vehicle has been detained at 6:05 p.m. at Amirgadh on 27.9.2018, after about expiry of 48 hours.
• The order of detention as well as the further notice issued under Section 129(3) of the CGST Act in FORM GST MOV-07.
• The Petitioner has challenged the constitutional validity of rule 138(10) of the Central Goods and Services Tax Rules, 2017 / Gujarat Goods and Services Tax Rules,2017 to the extent the said provision restricts validity period of the e- way bill in terms of distance to be travelled in a day.

Issue 

• Whether there is an ill-intention on the part of the petitioner to use the expired e-way bill?

 Order 

• The Hon’ble High Court relied on its own decision which is not further challenged and observed that there does not appear to be any ill-intent on the part of the petitioner to use the expired e-Way bill. The order of detention as well as the further notice issued under Section 129(3) of the CGST Act in FORM GST MOV-07 is also quashed and set aside, with all consequential benefits.
• The tax and the matching amount of penalty had been recovered, the penalty being an additional amount in wake of this quashment, the same shall be refunded to the petitioner with interest.
• The petition is allowed