Interstate goods’ seizure in the Absence of E-way bill provisions, under CGST Act; Prima-facie illegal

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Allahabad HC prima facie finds seizure of goods for lack of E-way bill during inter-state transit as illegal, absent provision thereof under CGST Act on relevant date; Notes Revenue contention that order was actually passed u/s 6 of IGST Act r/w Section 129(1) of CGST Act and mere wrong mention of provision viz. Section 129 of UP GST Act therein would not invalidate same; Observes that while Govt. provided for carrying E-way bill with goods in transit by issuing Notification in terms of Rule 138 of CGST Rules, same was enforceable from February 1, 2018; On the other hand, mandatory E-way bill stipulated by State Notification dated July 21, 2017 in terms of Rule 138 of UP GST Rules, is applicable only in respect of goods transported within State, not to goods brought from outside; Resultantly, directs Revenue to file counter within stipulated time frame, while directing release of goods and vehicle on furnishing of indemnity bond and security (other than cash and bank guarantee) in respect of proposed tax and penalty on value shown in accompanying documents : Allahabad HC

Citation: [TS-76-HC-2018(ALL)-NT]