No applicability of E-way bill in case of Interstate Transactions before 01.04.2018.

Case Details:

Issue- In the above case, the petitioner has challenged the impugned appellate order and impugned order passed by respondent authority alleging that the petitioner was not carrying the U.P. e-way bill on the date of interception of goods, hence the impugned action has been taken. The transportation in movement was transported from Chattisgarh to UP which was intercepted and detained in UP alleging the vehicle was not carrying U.P State E-way Bill.

Held- It was held that it was an inter-State transportation of goods, the U.P.G.S.T. Act 2017 did not apply and it is the I.G.S.T. Act 2017 and by virtue of section 20(15) of the said I.G.S.T. Act 2017 it was the C.G.S.T. Act 2017 which would apply in respect of matters covered by the I.G.S.T. Act 2017 on the subject of inspection, search, seizure and arrest and being an inter-State transfer of goods there was no requirement of carrying the U.P. State e-way bill. For all these reasons the insistence by the State authorities that the petitioner’s vehicle was not carrying the U.P. E-way bill is without any factual and legal basis Moreover, the court may again refer to the Division Bench judgment of this court rendered in Satyendra Goods Transport Corpn. (supra) wherein similar issues were considered and thrashed out. It has been held therein that in an inter-State transportation of goods U.P.G.S.T. Act 2017 will not apply. The C.G.S.T. Rules 2017 were amended on 13-8-2017 and vide another notification dated 29-12-2017 this amendment containing the e-way bill system was to come into force from 1-2-2018, but the notification dated 29-12-2017 was rescinded by a subsequent notification dated 2-2-2018. Thereafter the notification dated 7th March, 2018 had been issued regarding e-way bill system which was to apply from 1-4-2018. In the instant case goods being transported were intercepted on 19-2-2018, when there was no system of e-way bill in place under C.G.S.T. Act 2017 and U.P.G.S.T. was not applicable. Accordingly, the respondent parties are directed to refund the amount deposited by the petitioners as tax and penalty under the U.P.G.S.T. Act 2017, within two months.