Detaining vehicle due to expiry of e-way pass

NE Equipment Solutions Pvt. Ltd. Vs. The State of Tripura and others(Tripura High Court); WP(C) No.577/2021; 24.08.2021

Issue

Appeal before the High Court of Tripura by petitioner for the release of the machinery which has been detained at Churaibari check post while it was in transit from Silchar to Khowai.

Facts in Issue

• The petitioner is a company registered under the Companies Act and is engaged in the business of dealing in TATA Hitachi Construction Machinery. The petitioner has its Head Office at Silchar and a Branch Office at Agartala. In the course of the business, the petitioner sold one TATA Hitachi Hydraulic Excavator Model No. EX 210 LC to one Satya Sundar Das of Khowai. The cost of machinery was Rs.49,66,102/- on which IGST of Rs.8,93,898/- was collected from the purchaser and duly declared in the sale invoices.
• The excavator was being transported from Silchar to the head office of the petitioner company at Agartala under properly generated e-way bill dated 14.08.2021 with a validity period up to 16.08.2021.
• The machinery was being transported in a truck trailer and started its journey from Silchar on 15.08.2021. When the transport vehicle reached at Churaibari check post in the early morning hours of 16.08.2021, the transport department of State of Tripura detained the vehicle on the ground that the excavator had no registration in the State of Tripura which was violative of Section 192A of the Motor Vehicles Act.
• In due course the transport authority released the order of detention on 17.08.2021 upon the petitioner paying fine of Rs.10,000/-.
• Meanwhile the validity of the e-way bill had expired. The vehicle was now intercepted by the GST authorities at Churaibari check post on the ground that the driver did not have valid e-way bill for the machinery being brought within the State.
• In accordance a fresh e-way bill was generated by the petitioner 18.8.2021, though the authorities refused to accept the same as a valid document for passage.
• On 19.08.2021 the Superintendent of Taxes, Churaibari Enforcement Wing issued a show-cause notice to the petitioner under section 129(3) of the Central Goods and Services Tax Act and the State Goods and Services Tax Act calling upon the petitioner why unpaid tax with penalty totaling to Rs.17,87,796/- should not be recovered from the petitioner.

Judgement

Hon’ble the Chief Justice MR. Akil Kureshi and Hon’ble Mr. Justice Arindam Lodh held that the respondent shall release the machinery which was detained; The petitioner file an undertaking before this Court sworn by the Manager of the Branch Office or the Director of the Company within one week from today to the effect that if any tax or penalty liability is crystallized upon final assessment subject to right of appeal and further challenge, the petitioner shall deposit the same with the Government revenue; The petitioner have time up to 10.09.2021 to file reply to the show-cause notice dated 19.08.2021; The Assessing Officer shall pass final order of assessment in connection with the same show-cause notice bearing in mind the observations made in this order.

To Read Judgment Download PDF Given Below: