Last Updated On:
Dec. 20, 2020, 1:29 p.m.
AFTER EXPIRY OF E-WAY BILL, CAN THE GOODS BE UNLOADED?
The Karnataka High Court held that the validity of the Unloading of goods after the expiry of the E-way bill may be extended for 8 hours which reached the destination before the expiry of the E-way Bill.
What do you mean by an e-way bill?
An E-Way bill is basically short for Electronic Way Bill. It is a document that is generated electronically for the movement of goods from one place to another. This movement may be interstate or intra-state. E-Way bill is mandatory to be issued where the consignment value exceeds Rs 50,000 for every registered person who causes movement of goods.
Can there be any detention under GST?
Section 129 of the CGST Act, 2017 explains the Detention, seizure, and release of goods and conveyances in transit.
According to Section 129, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure
These goods or documents shall be released:
- on payment of the applicable tax and penalty equal to 100% of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to 2% of the value of goods or Rs 25,000, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty
- on payment of the applicable tax and penalty equal to the 50% of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to 5% of the value of goods or Rs 25,000, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty
FACTS OF THE CASE:
- The petitioner, Hemanth Motors a dealer in TVS motor vehicles and an assessee registered under the provisions of the Central Goods and Services Tax Act, 2017, purchased two-wheeler vehicles from a wholesale dealer under the tax invoice, and the motor vehicles purchased were dispatched from Hosur, Tamil Nadu to the place of destination after generating the corresponding e-way bills.
- The e-way bills were valid from December 31, 2018, 10:37 pm to January 1, 2019. The respondent authority visited the petitioner’s premises and issued an order for physical verification culminating in a notice under the provisions of Section 129(3) of the Act and the other relevant provisions. The petitioner is also served with demand.
- The petitioner ensured transportation of the vehicles under appropriate e-way bills that were valid from December 31, 2018, at 10.37 pm to January 1, 2019. The petitioner contends that the conveyance carrying the vehicles reached the place of destination on January 1, 2019, before the expiry of the validity of the e-way bills but the vehicles could not be unloaded on the same day and were being unloaded on January 2, 2019.
- The authorities while not disputing these assertions contend that the e-way bills had to be valid even at the time of the inspection as the vehicles were being unloaded from the conveyance.
- The single-judge bench of Justice Shyam Prasad held that the appellate authority should have considered the merits of the proceedings against the petitioners in the light of the provisions of Rule 138(10) of the Central Goods and Services Tax Rules, 2017 which prescribes the validity of an e-way bill with the extension of further period by eight hours after the expiry. The failure to consider the petitioner’s case in the light of the provisions of Rule 138(10) of the Central Goods and Services Tax Rules, 2017 has resulted in an improper and untenable order.