Order date – 23 June 2022

Facts

• The petitioner, M/s TRANSWAYS INDIA TRANSPORT, is a transporter engaged in transporting stainless steel coils and plates from Mumbai to Bengaluru. 
• The petitioner had to deliver two consignments at Peenya Industrial area at Peenya, one consignment at new Kalasipalyam and another consignment at S.P.Road cross, Bengaluru. However, the driver of the lorry took a wrong turn Bommasandra Industrial area instead of the Peenya Industrial area and committed an error and the authorities seized the vehicle and goods.
• The authorities imposed a penalty under Rule 138A of the Central Goods and Services Tax Rules, 2017 and Section 129 of the Central Goods and Services Tax Act, 2017.
• Aggrieved the party has filed for writ petition under articles 226 and 227 of the Constitution of India to set aside the above order.

Issue

• Whether the order passed by the Joint Commissioner of commercial taxes under Rule 138A of the Central Goods and Services Tax Rules, 2017 and Section 129 of the CGST Act, 2017 maintainable?

Order

• The authorities observed that the driver of the vehicle was carrying required E-way bills and tax invoices to deliver goods to Peenya Industrial area, Kalasipalyam and S.P.Road. The driver instead of taking a right turn at Hebbal junction and move towards Peenya Industrial area, he has taken a left turn and has moved towards Bommasandra Industrial area.  
• There may be chances of diversion that might have taken place due to human error and it cannot be definitely concluded that diversion was deliberate.
• The authorities set aside the impugned order.
• The authorities directed the respondents to release the vehicle and the goods detained pursuant to the said orders.