The Delhi High Court has held that penalty for mere expiry of an e-way bill is not justifiable when all documents produced except the reason for the delay in transportation of goods are not stated.
The petitioner was represented by Mr Rahul Gupta with Mr Rakesh Kumar and the respondent was represented by.The petitioner, Nirmal Kumar Mahaveer Kumar challenged the order dated 31.12.2021 passed by respondent no.2/Office of Appellate Authority (Delhi GST) which confirmed the demand raised by respondent no.3/Assistant Commissioner, Ward-112, Special Zone, Delhi, towards tax and penalty.
The amount demanded towards tax was Rs.2,33,100/- and an equal amount has been also demanded towards penalty which indicates that the penalty was imposed at the rate of 100%.
It was contended by Mr Anurag Ojha, the counsel appeared for the respondent that the demand was raised against the petitioner because the e-way bill generated had expired. The subject goods were being transported from Guwahati to New Delhi where the e-way bill was valid till 28.09.2020. The subject goods were intercepted on 29.09.2020 at 3:40 AM, by which time the e-way bill had expired.
The petitioner contended that since the earlier vehicle had broken down, another vehicle was requisitioned for transporting the goods. The petitioner failed to ask for an extension of time for the completion of the journey.
It was evident that the petitioner was not intended to evade tax and the court opined that the petitioner needs to be given another chance to establish a reason, as to why the subject goods did not reach their designated designation before the expiry of the e-way bill.
Mr Justice Rajiv Shakdher and Ms Justice Tara Vitasta Ganju disposed of the writ petition by setting aside the impugned order.
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