High Court upholds tax demands on vehicles with expired e-way bills, mandates payment for release

The Madras High Court ruled on two writ petitions involving the seizure of vehicles used for transporting goods with expired e-way bills to evade tax. The court upheld the payment demands specified in the impugned orders, requiring the petitioners to pay specified amounts under the TNGST Act and the CGST Act for the release of their vehicles. The court allowed the release of seized vehicles upon payment of the mandated amounts within fifteen days and permitted the transfer of seized goods to a Government warehouse. The decision ensures compliance with tax regulations and preserves the respondents' rights for future legal actions.

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Issues:
1. Seizure of vehicles for transporting goods with expired e-way bills to evade tax.
2. Dispute over the payment of tax amounts by the vehicle owners.
3. Consideration of releasing the seized vehicles and goods.
4. Evaluation of the petitioners' involvement in tax evasion conspiracy.
5. Determination of the payment required for the release of vehicles.

Analysis:
The judgment by the Madras High Court addresses two writ petitions concerning the seizure of vehicles used for transporting goods with expired e-way bills to evade tax. The petitioners, as owners of the vehicles, claim to have paid 10% of the tax under Section 129 of the Tamil Nadu Goods and Services Tax Act, arguing no further payment is necessary for the release of vehicles and goods. On the other hand, the Additional Government Pleader asserts that a significant amount must be paid by the petitioners based on orders under the TNGST Act and the CGST Act.

The court acknowledges the petitioners' role in transporting goods and emphasizes their responsibility to prevent tax evasion by consignors. Despite the lack of direct evidence implicating the petitioners in the consignor's tax evasion scheme, the court upholds the payment demands specified in the impugned orders. However, the court also recognizes the petitioners' right to appeal these orders under the GST enactments.

After hearing arguments from both sides, the court decides to release the seized vehicles upon payment of the amounts determined in the impugned orders. The specific payment amounts of Rs. 2,46,248/- and Rs. 2,31,508/- for each petitioner are mandated within fifteen days for immediate release of their respective vehicles. Additionally, the court allows the transfer of seized goods to a Government warehouse while preserving the respondents' rights to pursue further legal actions against the petitioners.

In conclusion, the writ petitions are disposed of with the directive for payment and release of vehicles, ensuring compliance with tax regulations and preserving the respondents' legal options for future proceedings.

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