GST: Expired E-Way Bill Alone Cannot Imply Tax Evasion, HC Quashes Seizure:

GST: Expired E-Way Bill Alone Cannot Imply Tax Evasion, HC Quashes Seizure M/s Cross Wheels Auto Pvt. Ltd., a GST-registered dealer engaged in the purchase and sale of two-wheeler motorcycles, procured 48 vehicles under two tax invoices dated 03.06.2023. The consignment note and corresponding e-way bills were generated on the same day, but due to a delay in arranging a new driver, the movement of goods commenced only on 14.06.2023. The vehicles reached the petitioner’s godown on 15.06.2023, where unloading was delayed until 22.06.2023 because of space constraints. Orders under Section 129(3) of the GST Act were passed, and the appeal was dismissed, leading to the present writ petition. Main Issue: Whether the mere expiry of the e-way bill, despite complete documentation and proof that the goods had already reached their destination, justified seizure and penalty proceedings under Section 129 of the GST Act. HC's Decided: The High Court held that the seizure was unsustainable, emphasising that the goods were two-wheeler vehicles identifiable by unique body and engine numbers. The authorities brought no material to show that these vehicles had been transported earlier using the same invoices, nor could motorcycles be moved on the road without a valid registration. The factual record, including tax invoices and GPS tracking, confirmed that the consignment had reached the petitioner’s premises before expiry of the e-way bill and that the delay in unloading was adequately explained. The Court noted that the case was squarely covered by previous rulings, particularly Trimble Mobility Solutions India Pvt. Ltd., Panasonic India Pvt. Ltd., and Globe Panel Industries, which held that the expiry of an e-way bill alone, without evidence of intent to evade tax, cannot justify detention. Since all requisite documents accompanied the goods and there was no indication of evasion, the impugned orders were quashed. The writ petition was allowed. To Read Full Judgment, Download PDF Given Below