Recently, An assessee had sold 300 bags of Pan Masala to a dealer at Meghalaya. During transit inspection, it was found that expired e-way bill was carried by the truck owner. The goods were detained and seized on the ground of tax evasion by using expired e-way bill.
It filed appeal and submitted that the goods were handed over to transporter for transporting same to Meghalaya through truck and E-waybill was generated on same day. However, due to some reasons truck was made available to petitioner after few days for transportation. The Appellate Authority dismissed the appeal by taking note that the E-way Bill should have been cancelled once the goods were not dispatched on the same day. It filed writ petition against the order.
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The Matter was Contested by the dealer in HC, Where The Honorable High Court observed that if movement had not been commenced on same day when e-way bill was generated, then the said e-way bill should be cancelled electronically as per Rule 138(9) of CGST Rules, 2017. The toll receipts clearly showed that petitioner had waited 10 long days and did not cancel said E-way bill and had evaded tax by using same documents for multiple trips. Therefore, it was held that the concerned authorities had rightly passed an order of seizure of goods and the petition was dismissed.
Case Details :- Ayann Traders v. State of U.P – [2023] 148 taxmann.com 357 (Allahabad)
Author’s Note :- This can happen in genuine cases also, In such cases, it is advisable, never to strictly transport on expired eway bill. If your Eway Bill has Expired, cancel it and generate new to avoid seizure.
