2023 (3) TMI 289 - HC - GST

Levy of penalty upon the petitioner for transporting goods against an expired e-way bill - petitioner contends that he ought not to be imposed the penalty amount as the petitioner was in no way responsible for the delay in issuing the gate pass at Cooch Behar - HELD THAT - There may or may not be valid reasons for not being able to transport the goods within the validity period of the e-way bill. The petitioner may not have any intention to evade tax; but can that be a valid ground to transport goods without a valid e-way bill. The Act is very clear on the issue. Law bars transportation of certain goods beyond a particular distance without a valid e-way bill. The petitioner being aware of the legal requirement generated the e-way bill prior to transportation of the goods. Due to some unknown reason there was delay in issuing gate pass at the check post for which the transportation got delayed resulting in non-delivery of goods within the stipulated time period. Law prescribes generation of fresh e-way bill for transportation of goods if the same cannot be delivered on time - It is the duty of the owner/transporter/consignor/consignee to keep track of the consignment and do the needful for transporting the goods in accordance with law. The interception and detention of goods without valid documents are permissible in law. The authority intercepting the vehicle in the course of movement is not supposed to appreciate the reasons as to why the vehicle was moving without a valid e-way bill. Transportation of goods with a proper e-way bill is one of the salient features of the Act. There is no scope to dilute the said provision of law for granting relief to an errant transporter. The Act cannot and ought not to be interpreted in such a manner that the very essence of the same is lost. Section 129 of the Act opens with a non obstante clause which lends a mandatory character to the same. The petitioner may or may not be directly responsible for the delay in issuance of the gate pass but he is certainly at fault in transporting goods without a valid e-way bill. Petition dismissed.

Summary

Issues:
Challenge to penalty for transporting goods against an expired e-way bill.

Detailed Analysis:
The petitioner transported goods against an e-way bill generated on 23rd April, 2022, but faced delays at the Cooch Behar check post, resulting in the e-way bill expiring on 30th April, 2022. Despite producing necessary documents, the check post authority delayed issuing a gate pass until 2nd May, 2022. Subsequently, the vehicle was intercepted, and it was found without a valid e-way bill, leading to the imposition of a penalty under Section 129 of the West Bengal Goods and Services Tax Act, 2017. The petitioner argued that the delay in issuing the gate pass was not their fault and that they had no intention to evade tax as they had paid it initially.

The respondent authority contended that transporting goods without a valid e-way bill is impermissible in law, and penalty was rightly imposed as per Section 129 of the Act. They emphasized that the transporter's intention to evade tax is irrelevant if goods are transported without a valid e-way bill. The authority cited provisions allowing for the generation of a fresh e-way bill if goods cannot be transported within the original validity period.

The Court acknowledged that the petitioner did not have a valid e-way bill when intercepted, emphasizing the legal requirement to transport goods with a valid e-way bill within the stipulated time. The Court highlighted the mandatory nature of furnishing electronic information about goods and transporting them within the e-way bill's validity period. It stressed that there is no provision to transport goods with an expired e-way bill. The Court rejected the petitioner's argument that the delay in transportation was not their fault, holding them responsible for transporting goods without a valid e-way bill.

The Court distinguished previous judgments cited by the petitioner, stating that they were passed in specific circumstances and cannot be treated as precedent. It upheld the appellate authority's reasoned decision and dismissed the writ petition, emphasizing the mandatory nature of the law regarding transportation of goods with a valid e-way bill. The Court concluded that no relief could be granted to the petitioner in this case.

In summary, the Court upheld the penalty imposed on the petitioner for transporting goods against an expired e-way bill, emphasizing the importance of complying with the legal requirement of a valid e-way bill for transporting goods and dismissing the petitioner's arguments regarding the delay in issuance of the gate pass.