Why Did Kolkata High Court Order GST Officer to Release Tea Despite Discrepancies in the E-Way Bill?

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Host: Welcome to "Legal Lens," the podcast where we dissect and discuss fascinating legal cases. I'm your host, and today we're joined by a renowned legal expert to delve into a recent judgment from the Calcutta High Court. Welcome to the show!

Guest Expert: Thank you for having me. I'm excited to discuss this case.

Host: Great! The case is Jodhraj Mohanlal vs Senior Joint Commissioner. The petitioner had booked a consignment of 20kg Soongachi tea valued at Rs. 74,586 to be delivered to Sikkim Tea Agency at Delhi. However, the goods were detained due to discrepancies in the E-way bill. Can you shed some light on this?

Guest Expert: Absolutely. The E-way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding Rs. 50,000. In this case, the vehicle was carrying goods of several other consignors along with the goods of the petitioner. The authorities detained the goods and vehicle due to discrepancies in the E-way bill. The transporter had generated a consolidated E-way bill, which included the goods of the petitioner.

Host: Interesting. And what was the court's decision?

Guest Expert: The court ordered the release of the detained tea consignment. The Directorate of Revenue Intelligence stated that the tea is perishable in nature and no involvement of the supplier of the tea with the smuggled poppy seeds have been ascertained. They had no objection if the consignment of the petitioner is released.

Host: That's a significant decision. But why did the court allow the release even though there were discrepancies in the E-way bill?

Guest Expert: The court considered the perishable nature of the tea and the fact that the petitioner was not involved in the smuggling of poppy seeds. It also took into account the fact that the petitioner had requested the release of his goods and had cooperated with the authorities. The court directed the respondent to release the tea consignment within a week, subject to the petitioner furnishing an undertaking to appear before the authority for enquiry/investigation if required.

Host: That's a fascinating insight into how the court balances the need for law enforcement with the practical realities of business operations. What are the broader implications of this judgment?

Guest Expert: This judgment highlights the importance of accurate documentation in the transportation of goods. It also underscores the need for authorities to consider the nature of goods, especially perishable items, during their investigations. Furthermore, it sets a precedent for how courts can intervene to ensure fair treatment of businesses in such situations.

Host: Fascinating insights! This case indeed offers a compelling look at the complexities of tax law and the role of E-way bills. Thank you for joining us today and sharing your expertise.

Guest Expert: It was my pleasure. Thanks for having me.

Host: And to our listeners, thank you for tuning in. Join us next time as we continue to explore the fascinating world of law and society. Until then, stay informed and stay curious!

Reference:

Court Name : Kolkata High Court

Parties : Jodhraj Mohanlal vs Senior Joint Commissioner, State Tax, Bureau of Investigation, North Bengal (H.Q.) & Ors.

The petitioner has filed the present writ application praying for a

direction upon the respondent authorities for release of the detained goods of value of Rs. 74,586/- vide Invoice No. JMS/090/22-23 dated 12.1.2023 to the petitioner.

Mr. Vinay Shraff, learned Advocate representing the petitioner submits that the petitioner had booked a consignment of 20kg Soongachi tea value of Rs. 74,586/- through the transporter Bajaj Parivahan Pvt. Ltd. to be delivered to Sikkim Tea Agency at Delhi. The transporter generated E-way bill

o. 801280351778 along with consolidated e-way bill generated by the transporter and the vehicle was carrying goods of several other consignors along with the goods of the petitioner. On 18th January, 2023 the

respondent no. 3 detained the goods and vehicle. On 16th February, 2023, the

petitioner had requested the respondent no.1 to release his goods. On 2nd March, 2023, the petitioner received a memo from respondent no. 2 and informed that the respondent no. 4 had requested to hand over all goods and documents regarding the vehicle and the cargo found in the vehicle.

Now, the petitioner has filed the present writ application. The respondent no. 4, i.e. the Directorate of Revenue Intelligence had filed

affidavit-in-opposition wherein it is stated that during enquiry it was ascertained from the transporter that the poppy seeds were

booked in the name of Ramdana seeds by a person of Nepal under invoice and E-way Bill of the firm named M/s. Jiyarul Trading of Deshbandhupara, Falakata, District- Alipurduar. The goods were delivered to their

godown for onward delivery at Delhi. In the statement the authorized signatory informed that they were completely unaware of the fact that the poppy seeds were being sent in the name of Ramdana seeds and none of the

consignors of tea were aware of the fact that the consignment declared to be Ramdana seeds were loaded in the vehicle. In the said affidavit it is further mentioned that preliminary investigation points to the facts

that poppy seeds have been smuggled from Nepal and a bogus invoice declaring the goods as Ramdana has been used to show the goods as bona fide. Further, the Bureau of Investigation authorities have intimated that the supplies has been found to be non-existent. It is further mentioned in the affidavit that the tea is perishable in nature and no involvement of the supplier of the tea with the smuggled poppy seeds have been ascertained and the Directorate of Revenue Intelligence has no objection, if the consignment of the petitioner is released.

Learned Counsel for the respondent no. 4 submits that on receipt of the

information, the respondent no. 4 has requested the State Authorities for

inspection of the seized property and, accordingly, during the investigation it has not been ascertained as to whether poppy seeds are the smuggled items or not. The vehicle is carrying the tea consignment which is perishable in nature and, as such, they have no objection for release of the vehicle and the tea consignment.

Learned Counsel for the respondent no. 4 further submits that as the consignment has been seized by the State authority and, as such, the State authorities have to take appropriate steps with regard to the poppy seeds.

Mr. Ghosh, learned Advocate appearing for the State Authorities submits

that as poppy seeds have been found in the vehicle and further investigation is to be carried out with regard to the ownership of the poppy seeds and, as such, if the tea is released in favour of the petitioner, the authorities may be given liberty to take appropriate steps for further investigation to

ascertain with regard to the poppy seeds. Considered the submissions made by

the Counsel for the respective parties, this Court finds that no purpose would be served by keeping the writ petition pending.

Accordingly, the writ petition is disposed o by directing the respondent no. 3 to take appropriate steps for release of the tea consignment in favour of the petitioner in accordance with law if there is no impediment for release tea consignment within a period of one week from the date of receipt of the copy of the order subject to furnishing an undertaking before the authority, as and when, if required, the petitioner will appear before the authority for enquiry/investigation.

It is made clear that the authorities, i.e. the State Authorities as well as

respondent no.4 shall be at liberty to carry out further investigation with regard to the poppy seeds and it is found with regard to illegal transportation of the poppy seeds, the authorities are free to take appropriate steps in accordance with law.

WPA No. 580 of 2023 is thus disposed of.

(Krishna Rao, J.)