Kerala High Court: e-Way Bill Not Required While Transporting Used Personal Vehicle

M/s VST and Sons (Respondents) have filed a writ petition challenging the detention of the Range Rover car, which was being transported from Coimbatore to Thiruvananthapuram as ‘used personal effects’. The respondent explained that the car was detained on the allegation that the same was transported without the e-way bill as mentioned under Rule 138 of the Kerala Goods and Service Tax (GST) Rules, 2017.

Earlier, the learned Single Judge allowed the writ petition and quashed the GST department notices. The court has heard Adv. Mohammed Rafiq, the Senior Government Pleader for the appellant, and Advocate A.Kumar, for the respondents. Now, the division bench of Justice S.V. Bhatti and Justice Bechu Kurian Thomas recalled a decision by the court in a similar matter related to M/s KUN Motor Company.

The court findings in the M/s KUM Motor Company case are

• They do not understand how the department could contend that if the car had been driven into Kerala from Puducherry (Puducherry), it would not be detained under Section 129 and not asked for an e-way bill.
• However, how come the vehicle will be detained only because it is transported in a carrier?.
• Also, the court can not understand how an intra-state sale would be converted to an inter-state sale merely because it is transported in the carriage.

Citing that the facts of the present case are almost similar to M/s KUN Motor Company’s case, the division bench quashed the detention and ordered the release of the vehicle. Also, the court held that even if a used vehicle has run only for negligible distances, it is to be categorized as ‘used personal effects.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in