Detention of goods in case of movement along with expired E-way bill.

Case Title: Abinash Kumar Singh v. State of West Bengal

Court: High Court of Calcutta

Petition No.: W.P.A. No. 3374 of 2022

Category of Dispute: Detention of Goods, Penalty under Section 129 – E-way Bill Validity

Date of Judgement: 03 March 2023

Relevant Section: Section 129 of the West Bengal Goods and Services Tax Act, 2017

Facts of the Case

1. The petitioner was transporting goods under an e-way bill dated 23 April 2022. The vehicle was stopped at Cooch Behar check post on 28 April 2022. Despite presenting all documents, the gate pass was delayed and only issued on 2 May 2022, while the e-way bill expired on 30 April 2022 AbinashKumarSinghvsStat….
2. The goods were subsequently intercepted and detained due to absence of a valid e-way bill. A penalty notice under Section 129 was issued, and the petitioner’s vehicle was released upon payment of the penalty AbinashKumarSinghvsStat….
3. The petitioner claimed he was not at fault for the expiration of the e-way bill and blamed the delay on the authorities at the check post AbinashKumarSinghvsStat….

Questions in Consideration

1. Whether transportation of goods after the expiry of an e-way bill due to delays caused by check post authorities is liable for penalty under Section 129? AbinashKumarSinghvsStat…
2. Whether absence of intent to evade tax can exempt the transporter from the penalty provisions?

Observations of the Court

1. The Court observed that the e-way bill had indeed expired at the time of interception and there was no provision permitting transportation on an expired e-way bill AbinashKumarSinghvsStat….
2. The petitioner was obligated under law to either update or regenerate a fresh e-way bill when delivery was delayed. There exists no exception in the Act for delays allegedly caused by state authorities AbinashKumarSinghvsStat….
3. The discretion to allow explanations for expired e-way bills could lead to arbitrary enforcement, which the law does not permit. Hence, the statutory violation must result in statutory consequences AbinashKumarSinghvsStat….
4. The Court rejected reliance on Hanuman Ganga Hydroprojects and Ashok Kumar Sureka cases, noting that they were decided on unique facts and not binding precedent

Judgement of the Court

1. The High Court upheld the penalty imposed by the adjudicating and appellate authorities, stating the law must be followed strictly with no allowance for dilution of the requirement of a valid e-way bill AbinashKumarSinghvsStat….
2. The writ petition was dismissed with no costs awarded

Between Fine Lines

• Even unintentional violations of e-way bill validity result in penalties under GST law.
• Transporters must regenerate or extend e-way bills in case of delay.
• Authorities are not obliged to evaluate reasons for expired e-way bills during interception.
• Procedural lapses by authorities do not exempt transporter from statutory compliance.
• Case reaffirms strict compliance with e-way bill provisions under Section 129.

Summary of Referred Cases