Detention of vehicle in absence of e-way bill not justified if purchased for personal use and temporary vehicle registration obtained: HC Kerala

Case Details: Assistant State Tax Officer (Intelligence), Alappuzha v. VST AND Sons (P.) Ltd. - [2021] 130 taxmann.com 486 (Kerala)

Judiciary and Counsel Details

• • S.V. Bhatti and Bechu Kurian Thomas, JJ.
  • Mohammed Rafiq, Govt. Pleader for the Appellant. 
  • A. Kumar, Adv. for the Respondent.

Facts of the Case

The assessee was located in Thiruvananthapuram (Kerala) and it purchased a vehicle for personal use from Coimbatore (Tamil Nadu). The proper officer detained the vehicle while being transported from Coimbatore to Thiruvananthapuram for reason that it was transported without e-way bill. The assessee filed writ petition challenging the detention of the motor vehicle. The learned Single Judge allowed the writ petition and quashed the detention order. The department field appeal against it.

High Court Held

The Honorable High Court observed that the goods which are classifiable as used personal and household effect falls under rule 138(14)(a) of the CGST Rules, 2017 and exempted from the requirement of e-way bill. In the present case, the assessee had purchased the vehicle after payment of IGST. A temporary registration was also taken apart from the motor vehicle insurance and the vehicle had in fact run 43 Kms. The Court relied upon the decision in KUN Motor Co. (P.) Ltd. v. Asstt. STO [2018] 100 taxmann.com 271 (Ker.) wherein it was held that used vehicles, even if it has run only negligible distances are to be categorized as ‘used personal effects’. Therefore, it was held that there was no merit in this appeal and liable to be dismissed.

Case Review

• • VST & Sons (P.) Ltd. v. Asstt. STO (Intelligence) [WP (C) No. 22304 of 2020, dated 21-10-2020] affirmed.
  • KUN Motor Co. (P.) Ltd. v. Asstt. STO [2018] 100 taxmann.com 271 (Ker.) (para 7) followed.

List of Cases Referred to

• • KUN Motor Co. (P.) Ltd. v. Asstt. STO [2018] 100 taxmann.com 271 (Ker.) (para 2).