Tripura-High-Court

The Hon’ble High Court of Tripura vide its order dated 24th May 2022 in the matter of Progressive Enterprises Vs. State of Tripura and others in WP (C) No. 427 of 202, held that the authorities need to honour the valid E-way bill produced and if any fault is found therein, action can be taken as provided in the statute. Thus, when the valid E-way bill was produced the detention of goods is not sustainable.

Facts:

  • The Petitioner entered into a contract with a private company for transporting, installing and commissioning telecommunication material throughout the State of Tripura.
  • A consignment containing two tax invoices valued at Rs.3,14,616.73/- dated 13.04.2022 and valued at Rs .12,53,941.83/- dated 13.04.2022, was transported from Guwahati to Agartala by TATA Yodha vehicle bearing registration No.AS01NC7115. Moreover, two E-way bills were also generated in respect of the said consignment.
  • That said vehicle further had to be used for transporting goods back to Guwahati, and while transporting goods back from Tripura to Guwahati on 26.04.2022, the driver of the vehicle was asked to produce relevant documents by the inspector of State Taxes, Churaibari.
  • It was informed by the driver that he is waiting for fresh tax invoices and e-way bills for outward transportation of telecommunication material. However, on 27.04.2022 a physical verification of the vehicle was carried out and the vehicle as well as the goods were seized on the issuance of Form MOV – 07.
  • That the petitioner produced 30 E-way bills generated by Reliance Jio Info communication and despite the fact that new E-way bills were provided by the driver, the authorities detained the goods and initiated proceedings against the petitioner.

Held:

  • The Hon’ble Court after considering the submissions from the both sides and the facts of the case, observed that in the present case the concerned driver produced the new E-way bills prior to seeking permission to leave the State of Tripura. Thus, it was obligatory on the part of the statutory authorities to honour the same and if any fault is not found, the transport of the machinery and the consignment concerned be permitted.
  • The scenario in the present case that initially goods were sent from Guwahati to Tripura by the consignor, however due various reasons the petitioner had to transport goods back, from Tripura to Guwahati and necessary E-way Bills for such transportation were also provided.
  • The Hon’ble Court taking reference of Rule 138(10) of the CGST rules, found that this rule applies to the present case as it explains the situation where E-way bills can be amended or re-issued for the same consignment, showing bona fide reasons for change.
  • Thereafter the Hon’ble Court taking note of the law stated in Rule 138(10) held that the only law inference which can be made is that the said rule has been complied with by the petitioner consequent to which fresh E-way bills were issued and produced before the concerned authorities. Thus, there is no justification in further detention of the goods at Churaibari check-post.

 

The Hon’ble Court with the above findings disposed of the writ petition and quashed any proceedings initiated against the petitioner with the directions to release the vehicle and the goods immediately.

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