E-Way Bill Not Required For Transportation Of Used Personal Vehicle : Kerala High Court

The Kerala High Court while dismissing an appeal ruled that used personal cars are exempted from the requirement of an e-way bill under Rule 138(14)(a) of the Kerala Goods and Services Tax Rules, 2017.  

A Division Bench of Justice S.V Bhatti and Justice Bechu Kurian Thomas accordingly upheld the decision of the Single Judge that allowed a petition challenging the detention of a used car by the appellant. 

The respondents in this appeal had approached the Single Bench aggrieved by the detention of their Range Rover vehicle by the appellant while it was being transported from Coimbatore to Thiruvananthapuram. 

The GST Department argued that such detection was necessary on the ground that the vehicle was transported without the e-way bill as contemplated under Rule 138. 

However, the Single Judge had allowed the petition, quashed the detention order of the appellant, and released the vehicle. This decision was challenged by the GST Department before the Division Bench.

The Court while hearing the appeal noted that the only reason stated for detaining the goods was that it was transported without the e-way bill. It was also brought to the attention of the Court that the owners of the vehicle had paid the applicable IGST upon its purchase, and that it had run 43 km before it was detained.

On this aspect, the Bench observed as follows:

"It must be remembered that goods that are classifiable as used personal and household effect falls under Rule 138(14) (a) of the Kerala Goods and Services Tax Rules, 2017 and are exempted from the requirement of e-way bill."  

Additionally, reliance was placed by the Bench on the decision of KUN Motor Company Private Ltd & Ors v. Assistant State Tax Officer [(2019) 60 GSRT 144 (Kerala)] where it was held that "The goods having come into the possession of the purchaser, and the vehicle having been used, however negligible the distance run, it is his "used personal effect" and there can be alleged no taxable transaction."

Therefore, the Court while agreeing with the aforementioned decision held that used vehicles, even if it has run only negligible distances are to be categorized as 'used personal effects'.

Finding no merit in the appeal, it was thereby dismissed by the Division Bench.   

Senior Government Pleader Mohammed Rafiq appeared for the appellant in the matter while Advocate A Kumar represented the respondents. 

Case Title: Assistant State Tax Officer (Intelligence) v. VST & Sons

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