Vehicle seizure upheld for expired E-way bill under Section 129 CGST Act despite penalty payment

The Calcutta HC dismissed a petition seeking release of a seized vehicle and goods due to an expired E-way bill. The court held that Section 129 of the CGST Act, 2017 empowers authorities to detain vehicles and seize goods, with release only upon payment of penalty equal to 200% of tax payable. The respondent authority was lawfully permitted to impose penalty and SGST as goods were detained within state territory. The petitioner had already paid the penalty and obtained vehicle release. The court distinguished the case from precedent involving bona fide non-extension of E-way bill validity.

---

---

Issues:
Assault on imposition of SGST and penalty for expired E-Way bill.

Analysis:
The petitioner, a manufacturer/supplier of Bitumen Emulsion, faced SGST and penalty imposition for an expired E-Way bill during transportation. Despite paying IGST and generating a valid E-Way bill, the consignment faced a breakdown, leading to detention in West Bengal. The Assistant Commissioner imposed SGST and penalty, which the petitioner contested.

The petitioner argued that the breakdown was unforeseen, and there was no intention to evade tax. Referring to GST as a destination-based tax, the petitioner contended that as the goods could not proceed due to the breakdown in West Bengal, no additional tax should be levied. The petitioner cited previous court judgments to support their stance.

The respondent contended that the expired E-Way bill indicated delivery within West Bengal, empowering the imposition of SGST and penalty under Section 129 of the GST Act. The petitioner's failure to extend the E-Way bill during the breakdown period was highlighted, justifying the tax and penalties imposed.

The Court upheld the authority's power under Section 129 to detain the vehicle and impose penalties, considering the circumstances of the case. The judgments cited by the petitioner were deemed inapplicable, and the dismissal of the writ petition was based on the lawful imposition of SGST and penalties due to the goods' detention in West Bengal.

Therefore, the Court dismissed the writ petition without costs, affirming the imposition of SGST and penalties for the expired E-Way bill during the consignment's breakdown in West Bengal.

---