E-way bill is not applicable where purchase was made for personal use (Rule 138(14)(a)

Case Details:

Issue- In the above case, the petition was filed challenging the detention of the ‘RANGE ROVER’ motor vehicle while being transported from Coimbatore to Thiruvananthapuram as ‘used personal effect’. The vehicle was detained on the allegation that the same was transported without the E-way bill as contemplated under rule 138 of the Kerala Goods and Service Tax Rules, 2017. Department was under challenge.

Held- It was held that the goods having come into the possession of the purchaser, and the vehicle having been used, however negligible the distance run, we are also of the opinion that it is his “used personal effect” and there can be alleged no taxable transaction in so far as the movement of goods from one place to another, especially since the car had been registered in the name of the purchaser and Moreover, Goods that are classifiable as used personal and household effect falls under rule 138(14)(a) of the Kerala Goods and Services Tax Rules, 2017 and are exempted from the requirement of e-way bill. The Petitioner had purchased the vehicle after payment of IGST. A temporary registration was also taken apart from the motor vehicle insurance. The vehicle was entrusted to the petitioner to transport the vehicle from Coimbatore to Thiruvananthapuram instead of driving the same across the State borders. During transportation, the vehicle has detained for the reason of non-generation of e-way bill. We find from the pleadings that the vehicle had in fact run 43 Kms. It was held that used vehicles, even if it has run only negligible distances are to be categorized as ‘used personal effects’ and therefore detention of such vehicle due to non-availability of E-way bill was not valid and justified. Thus, impugned detention order was set aside.