The Tripura High Court allowed a Writ petition for quashing the order passed by the Additional Commissioner of State of Tax which had rejected the appeal filed by the petitioner for securing the release of detained material.
Brief Facts:
The petitioner has filed this instant petition praying for setting aside and quashing the impugned order dated 16.04.2021 passed by the Additional Commissioner of State of Tax. By the impugned order, the appeal preferred against the order of this court, which directed the Petitioner to deposit 25% of the disputed tax and penalty to secure the release of the detained material, was dismissed.
Background of the Case:
The vehicles carrying taxable goods of the petitioner entered the State of Tripura a few days later than anticipated and during this period, the validity of the ‘e-Way bills’ expired. However, the vehicle was carrying duty-paid goods and there was no attempt to evade duty. Despite this, the authorities imposed a fresh levy of duty with the penalty.
The petitioner filed a writ petition bearing No.WP(C) No.179 of 2020, before the High Court inter alia praying for releasing the seized goods in favor of the petitioner. On 03.09.2020, the same was disposed and the respondents were directed to release the detained materials on deposit of 25% of the disputed tax and penalty by the petitioner. The petitioner filed two appeals before the Additional Commissioner of State of Tax which was dismissed by the order dated 16.04.2021.
Aggrieved thereby, the petitioner has filed this instant petition praying for setting aside and quashing the impugned order dated 16.04.2021.
Contentions of the Petitioner:
The Learned Counsel for Petitioner contended that the for the purpose of delivering goods in Agartala, on 02.02.2020, the ‘e-Way bills’ were generated which were valid up to 15.02.2020. But owing to some unforeseen circumstances, the movement of the vehicles was delayed. Due to this, when the vehicles entered Tripura, the ‘e-Way bills’ had expired. On the ground that ‘e-Way bills’ have expired, the GST authorities imposed a heavy levy on duty with the penalty which, the petitioner contends, is grossly irrational and arbitrary.
The Petitioner argued that the impugned order appealed against has not rendered substantive and conscionable justice to the petitioner and the same is liable to be quashed and set aside.
Contentions of the Respondent:
The Learned Counsel for the Respondent opposed the petition contending that the whole ‘e-Way bills’ system has now gone online and the same could have been extended on time but was not extended.
Observation of the Court
The Court observed that the ‘e-Way bills’ had expired during the transit and the petitioner was not in a position to ask for its renewal to the competent authority when the vehicle entered into the territory of the State of Tripura.
Due to this, the Court observed, the order dated 06.04.2021 passed by the Appellate Authority is not just and proper and the same is liable to be set aside.
The decision of the Court:
The Tripura High Court allowed the writ and set aside the impugned order dated 16.04.2021. The petitioner is entitled to all the consequential benefits including the refund.
Case Title: M/s Balaji Steel Rolling Mills Ltd. v. The State of Tripura and ors.
Coram: Hon’ble The Chief Justice Indrajit Mahanty and Hon’ble Mr. Justice Arindam Lodh
Case no.: WRIT PETITION (CIVIL) NO. 548 OF 2021
Advocate for the Petitioner: Mr. S. Deb and Mr. K. Debnath
Advocate for the Respondents: Mr. K. De
Read Judgment @LatestLaws.com
Picture Source :
