Detaining Goods: Only for Deliberate Tax Evasion

Quick Summary

The Tripura High Court has ruled that tax authorities should only detain goods in cases of deliberate tax evasion, not for technical or minor defects. In a specific case, machinery was detained due to an expired e-way bill caused by unforeseen delays at a check post. The court ordered the release of the machinery, emphasising the distinction between intentional evasion and minor administrative issues, especially when the tax liability had already been discharged.

Court :
Tripura High Court

Brief :
In NE Equipment Solution Pvt. Ltd. v. The State of Tripura and Others [WP(C) No. 577/2021 dated August 24, 2021],NE Equipment Solution Pvt. Ltd. ("the Petitioner") approached the Hon'ble Tripura High Court primarily for release of the machinery which was intercepted by the GST authorities on the ground that the driver did not have valid e-way bill for the machinery being brought within the State.

Citation :
WP(C) No. 577/2021 dated August 24, 2021

Daily Limit Reached