The Allahabad High Court quashed penalty under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 ( UPGST Act ) as the error committed was technical nature and without any intention to evade tax.
Thew writ petition was filed under Article 226 of the Constitution of India wherein the petitioner is aggrieved by an order dated November 10, 2020 passed under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 levying penalty upon the petitioner and the subsequent appellate order dismissing the appeal filed by the petitioner.
The only controversy involved in the present petition is with regard to non filling up of Part ‘B’ of the e-Way Bill. The undisputed facts are that firstly the bilty in fact had the details of the truck that was carrying the goods; secondly, the goods were not in variance with the invoice; and thirdly, the Department has not been able to indicate any kind of intention of the petitioner to evade tax.
A Single Bench of Justice Shekhar B. Saraf observed that “In the present case, the facts are quite similar to one in M/s Citykart Retail Pvt. Ltd.’s case ( supra ) and I see no reason why this Court should take a different view of the matter, as the invoice itself contained the details of the truck and the error committed by the petitioner was of a technical nature only and without any intention to evade tax. Once this fact has been substantiated, there was no requirement to levy penalty under Section 129(3) of the Act.”
“In light of the above, the orders dated November 10, 2020 and January 10, 2022 are quashed and set aside. The petition is allowed. Consequential reliefs to follow. The respondents are directed to return the security to the petitioner within six weeks” the Court concluded.
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