Wednesday, May 15, 2019

Whether Customs Officer is authorized to stop Export on the basis of an Expired E way Bill ??

Facts of the Case:
E- way bill was expired before the goods could reach the port of export and now the custom authorities are not admit the goods for export.

Law Applicable:
i) As per Rule 138 CGST rules;
"Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees shall, before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01 "

(ii) As per section of 51(1) of Custom Act;"Where the proper officer is satisfied that any goods entered for export are not prohibited goods and the exporter has paid the duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance and loading of the goods for exportation"

Interpretation: E-way bill is the requirement laid down by the GST laws and is regulated by proper officers of GST. Export is matter governed by Custom laws and section 50 therein dictates the export procedures. If all the procedures of customs are complied with then export should not be withheld. Moreover the board has time and again issued guidelines that the export should not be withheld/delayed if the procedures of customs are complied with and duty (if any) has been paid in full.

Conclusion: Custom authorities are not within their rights to stop export on the basis of an expired E- way bill. However the relevant penalty provisions shall be attracted in case of violaltions of E- way bill provisions.


Content Courtesy  : CA Nagesh Bajaj

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