Transportation of used personal vehicle exempt from the requirement of the e-way bill

Last updated: 04 August 2021

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The Kerala High Court has ruled that the transportation of a used personal vehicle is exempt from the requirement of an e-way bill. This decision was made in an appeal concerning a 'Range Rover' detained for not having an e-way bill while being transported as a 'used personal effect'. The court confirmed that goods classified as personal and household effects, including used vehicles, fall under an exemption in the Kerala Goods and Service Tax Rules.

Court :
Kerala High Court

Brief :
In Assistant State Tax Officer (Intelligence) v. M/s. VST & Sons (P) Limited and Muthukumar Meenakshy [WA No. 914 of 2021 dated July 22, 2021], the Assistant State Tax officer ('the Appellant') filed an appeal against the judgement dated October 21, 2020 [WP (C) 22304/2020] ('the Impugned Judgement').

Citation :
WA No. 914 of 2021 dated July 22, 2021

In Assistant State Tax Officer (Intelligence) v. M/s. VST & Sons (P) Limited and Muthukumar Meenakshy [WA No. 914 of 2021 dated July 22, 2021], the Assistant State Tax officer ('the Appellant') filed an appeal against the judgement dated October 21, 2020 [WP (C) 22304/2020] ('the Impugned Judgement').

Earlier, M/s. VST & Sons (P) Limited and Muthukumar Meenakshy ('the Respondents') had filed writ petition [WP (C) 22304/2020] against the detention of the ‘Range Rover' motor vehicle while being transported from Coimbatore to Thiruvananthapuram as ‘used personal effect'. The vehicle was detained on the allegation that it was transported without the E-way bill as contemplated under Rule 138 of the Kerala Goods and Service Tax Rules, 2017 ('the KGST Rules'). The Hon'ble Kerala High Court had allowed the writ petition vide the Impugned Judgement. Being aggrieved, the Appellant has filed the present writ appeal.

The Hon'ble Kerala High Court while dismissing the petition of the Appellant relied upon the decision in the case of KUN Motor Company Private Limited and Others v. the Assistant State Tax Officer, Squad No.3 Kerala State, Goods and Service Tax Department and Others [(2019) 60 GSRT 144 (Kerala)] and held that the goods that classified under personal and household effect falls under Rule 138(14)(a) of the KGST Rules and are exempted from the requirement of e-way bill.

Further held that, used vehicles, even if it has run only negligible distances are to be categorized as 'used personal effects'.

FAQ :

No, the Kerala High Court has ruled that transporting a used personal vehicle, classified as 'used personal effects', is exempt from the requirement of an e-way bill under the Kerala Goods and Service Tax Rules.

The case involved the detention of a 'Range Rover' motor vehicle being transported as a 'used personal effect' from Coimbatore to Thiruvananthapuram, due to the absence of an e-way bill.

The exemption falls under Rule 138(14)(a) of the Kerala Goods and Service Tax Rules, 2017, which relates to personal and household effects.

The court held that used vehicles, regardless of how little they have been driven, are to be categorised as 'used personal effects'.

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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