No Tax Evasion Intent Needed for Detaining Goods without Documents: HC

Case Details: Sterile India (P.) Ltd. v. Union of India - [2023] 149 taxmann.com 5 (Punjab & Haryana)

Judiciary and Counsel Details

• • Tejinder Singh Dhindsa & Pankaj Jain, JJ.
  • Ms Shweta Jain & Ms Anshul Mittal, Advs. for the Petitioner.
  • Anshuman Chopra & Ms Shruti Jain Goyal for the Respondent.

Facts of the Case

The petitioner was engaged in manufacturing of Pharmaceuticals. The department intercepted the vehicle and detained goods of the petitioner on the ground that Part-B of the E-Way bill was not entered. The order of detention was passed and goods were release after furnishing bank of guarantee.

The petitioner filed appeal against the detention order but the Appellate Authority rejected the appeal. It filed writ petition to challenge and orders passed by the authorities and contended that there was no intention to evade tax and the penalty should not be levied.

High Court Held

The Honorable High Court noted that the goods were intercepted during transit and documents accompanying goods were not in compliance with provisions of GST Act. In the instant case, the authorities were within their power to detain goods and demand penalty since e-way bills along with tax invoices and delivery challans were produced by driver of the vehicle but Part-B of E-Way bill was not entered.

The Court also noted that the authorities are not required to establish intention to evade payment of tax for detaining goods under section 129 of CGST Act, 2017. The petitioner had already made payment under Section 129(3), therefore, all proceedings in respect to the notice were deemed to have been concluded. Thus, there was no ground to interfere in the impugned order and the petition was dismissed.