Court upholds truck detention for tax evasion and non-compliance with e-way bill, citing history of violations

The Court upheld the detention of Truck No. GJ-03-AZ-6473 for lack of e-way bill and under-invoicing, citing the petitioner's history of habitual tax evasion. The final order under Section 129(3) of the CGST Act was deemed appealable, leading to the dismissal of the petition due to the existence of an alternative statutory remedy. Despite the petitioner's claim of a breach of natural justice principles, the Court emphasized the petitioner's repeated pattern of tax evasion and refusal to comply with regulations, supporting the decision to uphold the dismissal of the petition.

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Issues: Challenge to the detention of Truck No. GJ-03-AZ-6473 for lack of e-way bill and under-invoicing, appealability of final order under Section 129(3) of the Central Goods and Services Tax Act, breach of principles of natural justice in passing the impugned order.

Analysis:

1. Detention of Truck and Goods: The petitioner sought release of Truck No. GJ-03-AZ-6473 detained for lack of e-way bill, under-invoicing, and blank LR. The final order of assessment under Section 129(3) of the CGST Act was passed during the petition's pendency, challenging the tax demand and penalty. The Department alleged the petitioner's habitual offense of transporting goods without e-way bills, citing 10 previous instances. The Court noted the petitioner's modus operandi of paying tax only when caught, refusing to release the truck.

2. Appealability of Final Order: The Department contended that the final order under Section 129(3) was appealable, suggesting the present petition should not be entertained. The petitioner argued the order lacked sufficient opportunity, breaching natural justice principles. The Court acknowledged the appealability of the order and the availability of defenses in an appeal, leading to the dismissal of the petition due to the existence of an alternative statutory remedy.

3. Breach of Principles of Natural Justice: The petitioner's counsel contended that the order under Section 129(3) was passed without adequate opportunity, violating principles of natural justice. However, the Court, after considering the petitioner's history of habitual default and tax evasion, refused to exercise discretion in favor of the petitioner. The Court emphasized the petitioner's repeated pattern of transporting goods without e-way bills, paying taxes only upon detention, and upheld the dismissal of the petition due to the availability of an appeal process and the petitioner's conduct.

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