Court upholds government notification on transit goods docs until E-Way bill approval

The court upheld the government notification prescribing documents for goods in transit until the E-Way bill system approval, finding it in accordance with Rule 138 of the U.P. Goods and Services Tax Act. The State Government was deemed to have acted within its authority under the Rules as a temporary measure until the E-Way bill system is approved by the council. The court dismissed the challenge to the notification and circulars, emphasizing their temporary nature to facilitate business activities until the full implementation of the E-Way bill system.

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Issues:
Challenge to government notification prescribing documents for goods in transit until E-Way bill system approval.

Analysis:
The petitioner, an association of advocates, challenged a government notification and circulars prescribing documents for goods in transit until the E-Way bill system approval. The petitioner argued that the State Government lacked authority to prescribe such documents without council recommendations due to Article 279A of the Constitution. However, Section 165 of the U.P. Goods and Services Tax Act empowers the State Government to make regulations consistent with the Act by issuing notifications. Rule 138 allows the Government to specify documents for goods in transit until the E-Way bill system is approved by the council.

The court noted that the Rule is clear and unambiguous, allowing the State Government to prescribe documents for goods in transit until the E-Way bill system is developed and approved by the council. The notification prescribing documents was found to be in accordance with Rule 138 of the Rules and not in violation of any statutory provision. The State Government acted within its power under the Rules as a temporary measure until the E-Way bill system is approved.

Regarding the adoption of existing Form 38 and Form 21 for E-Way bills, the court observed that this was done as an interim measure to ensure smooth trading activity and transit of goods until the E-Way bill system is fully developed and approved by the council. The court emphasized that the prescription of forms under the impugned notification was temporary and aimed at maintaining business activities until the E-Way bill system is operational. The court found no merit in the challenge to the notification and the circulars, ultimately dismissing the petition for being devoid of merit.

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