Court upholds decision on detaining goods for lack of e-way bill under GST Act. Appellant directed to pursue alternative remedy.

The Court upheld the decision to reject the writ petition challenging the order passed under the Central Goods and Services Tax Act, 2017. It found that the detention of goods due to failure to generate an e-way bill was justified, as the goods required an e-way bill for transport. The Court dismissed the writ appeal, directing the appellant to pursue the alternative remedy before the appellate authority to address the legal question regarding the necessity of the e-way bill for the goods in question.

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Issues:
Challenge against Ext.P6 order under Section 129(3) of the Central Goods and Services Tax Act, 2017 - Rejection of writ petition - Interpretation of Rule 138 regarding generation of e-way bill - Availability of alternative remedy before appellate authority.

Analysis:
The appellant filed a writ petition challenging Ext.P6 order passed by the 2nd respondent under Section 129(3) of the CGST Act, 2017. The detention of goods was based on the alleged failure to generate an e-way bill as required by Rule 138. The appellant argued that the e-way bill was not necessary for the transport in question under sub-rule (14)(b) of Rule 138 as the goods were not transported by motorized conveyance. However, the 2nd respondent found that the e-way bill was mandatory as the goods were a new vehicle (Autorickshaw) transported from the appellant's principal place of business to its branch as a "Branch Transfer." The appellant could have used the temporary registration number of the vehicle to generate the e-way bill.

The appellant contended that the specific question raised was not addressed by the 2nd respondent in the impugned order. The appellant also highlighted an observation by a learned single Judge that the ground for detention was prima facie unsustainable. However, the Court held that such observations do not bind the respondents in deciding the issue. The main issue to be determined was whether the appellant was justified in being directed to avail the alternative remedy before the appellate authority. The appellant argued that the appellate authority might not be able to decide the legal question involved. The Court disagreed, stating that the appellate authority could indeed determine if there was a statutory obligation to generate the e-way bill for the goods in question.

Ultimately, the Court found that the reservation made by the learned single Judge for availing the statutory remedy was not illegal, erroneous, or improper. Consequently, the writ appeal was dismissed, upholding the decision to reject the writ petition and directing the appellant to pursue the alternative remedy before the appellate authority.

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