The Allahabad High Court held that the e-way bill would not be essential for the intra-city movement of goods, held the order by the appellate authority. But the same ruling would bind the applicant and respondent to the same could be directed in the identical case in different courts.
The GST e-way bill would be the document that the individual in charge of the conveyance of a consignment of goods securing a value exceeding Rs 50,000 has to carry, as stipulated in the GST Act.
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In the technical term, a GST e-way bill is needed for the goods transportation valued at Rs 50,000 or exceeding that within 1 kilometre. But the states would be free to revise the limit or furnish exemptions for the inter-state movement of goods or movement in the city only. Whatever the value the state of Gujarat has exempted the intra-city goods movement.
In the case, Principal Commissioner CGST & Central Excise, Lucknow, contested the appellate order that has been issued by the Additional Commissioner (Appeals), Customs, GST, and Central Excise, in the matter of Lucknow-based Bushrah Export House.
The company seeks a CGST refund of Rs 1.84 cr in the month of February 2020. The provisional refund would get permitted however on claiming the respondent was scrutinized the tax department revealed that the refund paid was wrong. As per that the firm obtains a show cause notice not merely on the basis of refund but on the issue of an Input tax credit.
On the examination, of the deputy commissioner, there is no e-way bill for the goods that the suppliers supplied to the company. An order for rejecting the ITC claim is been passed along with the left refund amount except recovery and the sanctioned amount and levying penalty.
The firm furnished a petition to the Additional Commissioner (Appeals) CGST, Lucknow, which specified that the inputs obtained via respondent would have been sent from Surat to its warehouse in the identical city, in which they would get processed and then the goods were being exported via ICD Kanpur.
Complying with the notification provided via Gujarat Commercial Tax Department, given that a GST e-way bill was not needed for the intra-city goods movement whatever the value. The petition was accepted, and the order abiding the refund and levy of the GST penalty was revoked.
The court sees that in this case, the show cause notice is limited to the allegations against the firm getting the supplies of goods without the e-way bills, through which the same has been handled through the appellate authority after perusing the invoices that “the goods were supplied to the respondents from Surat to Surat and thus, the notification dated September 19, 2018, was clearly in favour of the respondents.”
It has been noted that there is been no allegation that was imposed on the transfer of goods from Surat to Kanpur holding a GST e-way bill. Acknowledging these the court has denied the petition of the GST department.
