In R/SPECIAL C.A. No. 18982 of 2018-GUJ HC- Gujarat HC quashes detention order issued u/s129(3) of CGST Act as e-way bill expired during transit and same couldn't be construed as ill-intent to use such bill
Justices Sonia Gokani & Sandeep N. Bhatt [18-01-2023]

Read Order: ORSON HOLDINGS COMPANY LIMITED & 1 other(s) vs UNION OF INDIA &other(s)

Mansimran Kaur

Ahmedabad, February 2, 2023: If during transit, the e-way bill expires, then the same cannot be construed as an ill-intent to use the expired bill, the Gujarat High Court has observed,

While allowing the  petition, the Division bench of Justice Sonia Gokani and Justice Sandeep N. Bhatt observed that the company was situated at Howrah, West Bengal and the place of delivery was Jamnagar, Gujarat and in transit, the e-Way bill expired in the present case.

 The petition challenged  the constitutional validity of rule 138(10) of the Central Goods and Services Tax Rules, 2017 / Gujarat Goods and Services Tax Rules, 2017 as being unconstitutional and violative of Articles 14, 19(1)(g) and 301 of the Constitution of India, to the extent the said provision restricts validity period of the e-waybill in terms of distance to be travelled in a day but such prayers were not pressed.

The only prayers that survived for consideration pertained to the challenge to the detention order and the Notices.

After considering the submissions, the Court noted that in the instant case it was noticed that the goods of the said vehicle were  detained at 6:05 p.m. at Amirgadh on September 27, 2018  after about expiry of 48 years. 

The Bench referred to the decision in Shree Govind Alloys Pvt.Ltd. V/s State of Gujarat( Special Civil Application No.23835 of 2022) wherein the delay was of almost 4 ½ hours before the e-Way bill could expire and the Court allowed the petition as no fraudulent intention was established.

Noting that the present case was squarely covered by this decision which had not been further challenged, the Bench held that from the facts which are robust in nature, it can be gathered that there does not appear to be any ill-intent on the part of the petitioner to use the expired e-Way bill. The company is situated at Howrah, West Bengal and the place of delivery was Jamnagar, Gujarat and in transit, this e-Way bill expired, the Court observed. 

Hence, the petition was allowed.