Consignment of goods should not be detained or seized for small mistake in documents: HC

In this case the goods were in transit with all the necessary documents including the E-way bill generated from the GST portal. The goods were moved through a truck whose registration number was also correct. The LR was also filled in the E-way bill.

The Only discrepancy noted in the E-way bill was with regard to the “wrong vehicle type”.

Taking reference of CBIC Circular Number “CBEC/20/16/03/2017-GST” dated 14th September 2018 the court said that in case a consignment of goods is accompanied with an invoice or any other specified document and also an e-way bill, the proceedings under Section 129 of the CGST Act may
not be ordinarily initiated, more particularly, in the situation, as highlighted in para 5 of the circular.

The Situations are as follows:

a) Spelling mistakes in the name of the consignor or the consignee but the GSTIN, wherever applicable, is correct;

b) Error in the Pincode but the address of the consignor and the consignee mentioned is correct, subject to the condition that the error in the PIN code should not have the effect of increasing the validity period of the e-way bill;

c) Error in the address of the consignee to the extent that the locality and other details of the consignee are correct;

d) Error in one or two digits of the document number mentioned in the e-way bill;

e) Error in 4 or digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct;

f) Error in one or two digits/characters of the vehicle number.

As per the Court, the goods of the writ applicant fall within Clause 5 of the circular referred to above. Further, the applicant was given the benefit of the doubt because of the manner in which he has proceeded so far and also having regard to the fact that very promptly he brought to the notice of the authority concerned and admitted its mistake.

Thus the impugned notice issued by GST Department in Form GST MOV – 07 dated 12th April 2022 was hereby quashed and set aside. Accordingly the proceeding under section 129(1) of the CGST Act in Form GST MOV – 06 dated 12th April 2022 were also hereby quashed and set aside.

The goods and the conveyance shall be released at the earliest.