HC: Expired GST E-way Bill Does Not Show the Sense of Tax Evade

The Gujarat High Court specified only e-way bill expiry does not show an intent to evade taxes.

The division bench of Justice Sonia Gokani and Justice Mauna M. Bhatt, on the basis of the goods the detention was concerned with the expiration of the GST e-way bill number, which lapses in the transit, the same would not be the cause for the detention and seizing M.S. Billet including with a truck.

Under Section 129(3) of the Central Goods and Services Tax Act, 2017, the taxpayer or applicant has questioned the authority of the respondent/department, asking for the sum of Rs. 7,53,364 as a demand for tax and penalty

The applicant, the truck left in non-motorable condition, therefore the goods which were provided dated on or prior to 17th Oct 2022, can not be provided within time. During the search on October 19, 2022, due to the expiration of the e-way bill number, the same would come under the officer’s eye, and the whole truck including the goods would have been seized. GST Form MOV No. 1, 2, 6, and 7 have been issued to the applicant in which he was asked to be present and the order was issued asking for the tax and penalty.

The council explained that the detention of the goods having an invoice value of Rs 24, 69,358 including the conveyance on the basis that the e-way bill would get lapsed 41 hours prior to the duration of interception. The duration between the e-way bill validity expiration and the interception time does not verify and there is no justification furnished via the driver of the conveyance. No effective reason would be there for the non-update of the e-way bill being furnished.

There is no objective of tax evasion with fraudulent purpose or negligence by the applicant was proved by the department said the court. Because of the delay, the e-way bill was made to lapse in almost four and a half hours. The same emerged to be bona fide, without building any bogus intent.