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2023 Supreme(Online)(TRI) 472
HIGH COURT OF TRIPURA
HON'BLE THE CHIEF JUSTICE(ACTING),HON'BLE MR. JUSTICE ARINDAM LODH
M/S WESTERN CARRIERS (INDIA) LIMITED – Appellant
Versus
THE STATE OF TRIPURA AND ORS – Respondent
WP(C)/852/2021
There is no provision for double imposition of tax and penalty upon the shipment, which has already paid proper tax. Minor anomaly in regard to the class of vehicle as to the description in the E-Way Bill, nowhere invites any provision for imposition of tax and penalty as is done against the instant petitioner. For violation on other grounds as is applicable against the instant petitioner, only Rs.10,000/- can be fastened and fined that too without detention of the vehicle.
Headnote:
E-WAY BILL - WRONG DESCRIPTION OF VEHICLE - NO DOUBLE TAXATION - NO DETENTION OF VEHICLE - [The court held that there is no provision for double imposition of tax and penalty upon the shipment, which has already paid proper tax. Minor anomaly in regard to the class of vehicle as to the description in the E-Way Bill, nowhere invites any provision for imposition of tax and penalty as is done against the instant petitioner. For violation on other grounds as is applicable against the instant petitioner, only Rs.10,000/- can be fastened and fined that too without detention of the vehicle.]
Fact of the Case:
The petitioner, a registered transporter, was transporting a consignment for ONGC. The E-Way Bill generated by the transporter inadvertently mentioned the class of the vehicle as 'ODC' instead of a normal vehicle. The vehicle was intercepted by the enforcement wing and tax and penalty were labeled upon the transporter for the wrong description of the class of the vehicle.
Finding of the Court:
The court held that there is no provision for double imposition of tax and penalty upon the shipment, which has already paid proper tax. Minor anomaly in regard to the class of vehicle as to the description in the E-Way Bill, nowhere invites any provision for imposition of tax and penalty as is done against the instant petitioner. For violation on other grounds as is applicable against the instant petitioner, only Rs.10,000/- can be fastened and fined that too without detention of the vehicle.
Issues: Whether there is double taxation and penalty for wrong description of vehicle in E-Way Bill?
Ratio Decidendi: The court relied on the provisions of the GST Act and the E-Way Bill Rules to hold that there is no provision for double imposition of tax and penalty upon the shipment, which has already paid proper tax. Minor anomaly in regard to the class of vehicle as to the description in the E-Way Bill, nowhere invites any provision for imposition of tax and penalty as is done against the instant petitioner. For violation on other grounds as is applicable against the instant petitioner, only Rs.10,000/- can be fastened and fined that too without detention of the vehicle.
Final Decision: The court disposed of the writ petition with a liberty to the petitioner to file an appeal against the impugned action of the respondents. The Appellate Authority before deciding the appeal shall consider the matter in its entirety including the issue that is pending before the Hon’ble Supreme Court. Further, till the appeal is decided, the Bank Guarantee that is furnished by the petitioner shall continue.
Page 1 of 4
HIGH COURT OF TRIPURA
AGARTALA
WP(C) NO.852 OF 2021
M/S Western Carriers(India) Ltd.
……… Petitioner(s)
Vs.
The State of Tripura and ors.
……. Respondent(s)
For the Petitioner(s)
: Mr. A. Nandi, Advocate.
For the Respondent(s)
: Mr. K. De, Addl. G.A.
Date of hearing and delivery of
Judgment & Order
: 03.01.2023.
Whether fit for reporting : YES/NO.
HON’BLE THE CHIEF JUSTICE (ACTING)
HON’BLE MR. JUSTICE ARINDAM LODH
JUDGMENT AND ORDER(ORAL)
The petitioner herein is a registered transporter in the
name and style of M/S Western Carriers(India) located at
67/28 Strand Road Kolkata. The petitioner-transporter was
booked with consignment No.1/ONG-0080/21 against SL.
No.461859 dated 24.09.2021 from the Office of Transportation
and Shipping, Oil and Natural Gas Corporation, located at
Technopolis Building, 4th Floor, Sector-V, Salt Lake Kolkata for
delivery of said shipment at ONGC, Tripura Asset, Badharghar
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Complex,
which
was
also
having
GST
registration
No.16AAACO1598A2ZP(Tripura). The convey note was shared
with the petitioner-transporter. Thereafter, E-Way Bill was
generated by the transporter dated 25.09.2021 for the smooth
movement of the said shipment. Inadvertently, the class of the
vehicle was mentioned as 'ODC' instead of a normal vehicle.
The
vehicle
of
the
transporter
vide
registration
No.JK02AV1205(truck) was intercepted on 05.10.2021 by the
enforcement wing at Churaibari, North Tripura. During
inspection/physical verification of the said vehicle, no wrong
consignment was detected except the wrong description of the
class of the vehicle, for which tax and penalty were labeled
upon the transporter. Finally, for the release of the urgent
operational spare of ONGC, the petitioner had to execute a
bond and a bank guarantee worth Rs.40,85,488/- in favour of
the Superintendent of State of Tax, Churaibari Enforcement
Wing, North Tripura, 799262.
2.
Being aggrieved by the impugned order of
detention and order of proposed payment of tax and penalty,
the petitioner herein has filed this instant writ petition praying
for the following reliefs:-
“ (i) Issue rule asking the respondents to show
cause as to why the respondents No.4 & 5 should not be directed to
release the Bank Guarantee in favour of the petitioner.
Page 3 of 4
(ii) Issue Rule upon the respondents and each one
of them to show cause as to why a writ in the nature of certiorari
shall not be issued directing the respondents to produce the records
relevant to the subject matter of the proceedings for rendering
consignable justice by squashing/setting aside the impugned order
of detention of goods dated 06.10.2021 in FORM GST MOV-06
towards allowing the movement of the consigned goods and further
the demand raised vide FORM GST MOV-07 dated 06.10.2021.
(iii) Issue rule upon the respondents and each one
of them to show cause s to why the writ in the nature of mandamus
shall not be issued directing the respondent Nos.3 to 5 to provide a
scope to rectify the inadvertent mistake in regards to the class of
vehicle meant for said shipment and as well as for dropping the
proceedings and also for passing necessary direction for release of
bank guarantee.
(iv) Upon hearing both the parties’ rule may be
made absolute in the terms of the above prayer.
(v) Any other order as your lordship may deem fit
in the facts and circumstances of the case.”
3.
Mr. A. Nandi, learned counsel appearing for the
petitioner submitted that there was no suppression in either
invoices or bill of the supply of delivery challan in transit. There
is no provision for double imposition of tax and penalty upon
the shipment, which has already paid proper tax. Minor
anomaly in regard to the class of vehicle as to the description
in the E-Way Bill, nowhere invites any provis
