Authorities impounded a car being sent by a dealer from Puducherry to Thiruvananthapuram for personal use of his customer without an e-way bill. It has to be generated if goods worth more than Rs 50,000 are transported, but is not applicable on goods for personal consumption. The matter went to the Kerala high court.

The court said the vehicle could be impounded for lapses under the GST laws. But, the litigant is free to press for his arguments that it was for personal use through adjudication. However, he will have to prove the car being transported stand exempted from the rigours of the GST regime.

If the person wants, the adjudication can happen at the commissioner appeals level now. The court did not comment on whether such a vehicle was used for personal and household effects and accordingly, the e-way bill would not apply. It held that these questions would be decided by adjudicating authorities.

The court made observations on larger and harsh outcomes originating from minor lapses. It stated the law, at times, can be harsh, and the courts, usually, needs to respect the legislative wisdom.

Experts say the ruling has lessons for those buying vehicle in one state and getting it transported to the other.

"As a thumb rule, carrying e-way bill for movement of goods with value more than Rs 50,000 is mandatory. One should be aware of the exemptions available to this rule, in case no e-way bill is being carried along with the goods," said Harpreet Singh, partner, KPMG.