2023 (9) TMI 957 - HC - GST

Transporting Goods: Proper Documents Protect Carriers from Penalties Under CGST Act Section 129(1)

Western Carrier India Ltd Versus State Of U.P. And 4 Others

HC ruled that goods and vehicle should be released when proper transportation documents (E-Way bill and invoice) are present. The carrier cannot be held ... Seeking release the goods and the vehicle seized by respondents by accepting penalty in terms of section 129 (1)(a) of the GST Act - HELD THAT:- In view of the fact that the department does not dispute the petitioner's assertion that the goods in transit were carrying necessary documents in the form of E-Way bill and invoice etc, the department ought to have considered the petitioner's prayer for release of goods and vehicle upon compliance of the provisions contained U/s 129 (1) (a) of the Act. A direction accordingly is issued to the respondents to act in terms of the circular dated 31.12.2018 and release the goods upon compliance of the condition stipulated U/s 129(1)(a). Petition disposed off. Issues involved:The liability to pay penalty under Section 129(1)(b) of the CGST Act, 2017 and the release of goods and vehicle seized by the authorities by accepting penalty under Section 129(1)(a) of the GST Act.Liability to pay penalty under Section 129(1)(b):The petitioner challenged an order fixing liability to pay penalty under Section 129(1)(b) of the CGST Act, 2017. The petitioner argued that based on a circular issued by the Board, if the invoice or specified document accompanies the goods, either the consigner or consignee should be deemed as the owner. As the goods transported were accompanied by necessary documents including an E-Way bill and invoice, the petitioner, being a carrier, should have been treated as the owner. The State counsel acknowledged the documents accompanying the goods and did not dispute the applicability of the circular dated 31.12.2018. The High Court directed the authorities to release the goods upon compliance with Section 129(1)(a) of the Act, as per the circular.Release of goods and vehicle seized:The High Court noted that the authorities should have considered the petitioner's request for the release of goods and the vehicle, given the compliance with Section 129(1)(a) of the Act. The Court emphasized that since the necessary documents were with the goods in transit, the authorities should act in accordance with the circular and release the goods. The Court left other questions open to be examined in a statutory appeal to be filed before the appropriate authority.Therefore, the writ petition was disposed of with a direction to release the goods upon compliance with Section 129(1)(a) of the Act, based on the circular's clarification regarding the ownership of goods when accompanying specified documents.