In WPA 340 of 2023-CAL HC- Sec.129 of West Bengal GST Act would be attracted where vehicle in which goods stood transferred for being transported allegedly to pre-recorded destination, did not have e-way bill
Justice Amrita Sinha [03-03-2023]

Read Order: Asian Switchgear Private Limited Vs. State Tax Officer, Bureau Of Investigation, North Bengal Headquarters & Ors 

Tulip Kanth

Kolkata, March 10, 2023: Clarifying that the transfer of the goods to a different vehicle for transporting the same to the consignee ought to have been done only after generating a fresh e-way bill, the Calcutta High Court has dismissed a petition challenging the order imposing penalty u/s 129(3) of West Bengal Goods and Services Tax Act, 2017 in case where the goods were seized as there was failure on the part of the person in charge to produce documents in support of the movement of the goods. 

The Single-Judge Bench of Justice Amrita Sinha said, “The moment the goods are unloaded from the vehicle in respect of which e-way bill was generated and loaded in a different vehicle without any e-way bill a statutory breach is committed, liable to be dealt with in accordance with the statute.”

After being aggrieved by the order passed by the adjudicating authority and subsequently affirmed by the appellate authority imposing penalty under Section 129(3) of the West Bengal Goods and Services Tax Act, 2017, the petitioner had approached the High Court.

The petitioner had put forth a plea for setting aside the aforesaid orders with a direction for refund of the penalty amount.

In this case, the e-way bill in question was generated on  June 10, 2022 and the same was valid upto June 21, 2022. The vehicle number against which the eway bill was generated was specifically mentioned therein. The goods which were being transported against the aforesaid e-way bill were intercepted on June 19, 2022, from a different conveyance, not mentioned in the e-way bill. 

On demand, the person in charge of the goods and conveyance failed to produce any document in support of the said goods being transported by a different conveyance. As there was failure on the part of the person in charge to produce documents in support of the movement of the goods, the goods were seized and later released on payment of penalty under Section 129(3) of the West Bengal Goods and Services Tax Act, 2017.

The Bench was of the opinion that the adjudicating authority and the appellate authority applied their mind and on being satisfied that the goods were found to be transported without any e-way bill imposed penalty. 

“The petitioner ought to appreciate that when an e-way bill is generated then the details of the goods to be transported, the place from where the shipment is made and the final destination are mentioned therein along with the details of the transporter and the vehicle number”, the Bench said.

Apart from the taxing purpose, the e-way bill is generated to identify the goods that are being transported, the place from where it is being transported, the final destination and the vehicle number by which the goods will be transported.  The same implies that the goods cannot and ought not to be transferred from one vehicle to the other, far less, transported via a different vehicle, without obtaining a proper e-way bill, the High Court opined.

The Bench further said, “There may be instances where, for illegal purpose, the goods are off loaded in the midway and taken to a different destination other than the one mentioned in the e-way bill. It is not for the authority to ascertain the reason as to why such action has been undertaken. There is no requirement in law to verify the reason for transporting goods in a vehicle without a proper e-way bill.”

The High Court dismissed the petition while stating, “The petitioner admits that the vehicle in which the goods stood transferred for being transported allegedly to the pre-recorded destination, did not have an e-way bill. The Court is convinced that provision of Section 129 will be attracted in such a situation and has been rightly invoked by the authority.”