HC directed dept. to consider all evidences that vehicle reached destination before expiry of e-way bill

Case Details: M.S. Metals & Steels Ltd. v. Commercial Tax Officer - [2022] 136 taxmann.com 418 (Karnataka)

Judiciary and Counsel Details

• • S.R. Krishna Kumar, J.
  • H.Y. Harish and Sandeep Huilgol, Advs. for the Petitioner. 
  • Hema Kumar, ASG for the Respondent.

Facts of the Case

The goods were transported by the petitioner along with the proper invoice and e-way bill. The vehicle along with goods reached the destination and vehicle was parked at the destination. Next day, the proper officer seized the goods early morning before vehicle was unloaded at destination point and tax along with penalty was levied on account of expiry of e-way bill. The petitioner filed appeal but same was dismissed. It filed writ petition against the same.

High Court Held

The Honorable High Court observed that the petitioner submitted detailed reply along with proofs of toll plaza slips to show that vehicle reached destination before the expiry of e-way bill. In the case of Hemanth Motors v. State of Karnataka [2021] 124 taxmann.com 550, it was held by this court that so long as vehicle and goods have reached destination point prior to expiry of E-way bill, the orders levying penalty passed by the department are illegal and arbitrary and deserve to be quashed.

In the instant case, the reply along with proofs of vehicle reaching destination before expiry of e-way bill were not considered and therefore, the impugned order was liable to set aside. The department was also directed to grant an opportunity to the petitioner to produce documents, objections etc., and thereafter proceed and conclude the proceedings in accordance with law.

List of Cases Referred to

• • Hemanth Motors v. State of Karnataka [2021] 124 taxmann.com 550/84 GST 394 (Kar.) (para 5)
  • State of Karnataka v. Hemanth Motors [2021] 133 taxmann.com 323 (Kar.) (para 5).