No GST Evasion on Mere Non-Extension of Validity of E-Way Bill as Traffic blockage due to agitation responsible for not providing smooth passage of Traffic: Supreme Court [Read Order]

The Supreme Court has held that no tax evasion on mere non-extension of Validity of E-Way Bill as traffic blockage due to agitation responsible for not providing smooth passage of traffic.

The taxpayer, Satyam Shivam Papers was evading tax because the e-way bill had expired a day earlier, had not only been baseless but even the intent behind the proceedings against the writ petitioner was also questionable, particularly when it was found that the goods in question, after being detained were, strangely, kept in the house of a relative of the petitioner for 16 days and not at any other designated place for their safe custody.

The High Court has set aside the levy of tax and penalty of Rs. 69,000/- while imposing costs of Rs. 10,000/- (Rupees Ten Thousand), payable by the petitioner No.2 to the writ petitioner within four weeks.

The analysis and reasoning of the High Court commends to us, when it is noticed that the High Court has meticulously examined and correctly found that no fault or intent to evade tax could have been inferred against the writ petitioner. However, as commented at the outset, the amount of costs as awarded by the High Court in this matter is rather on the lower side. Considering the overall conduct of the petitioner No.2 and the corresponding harassment faced by the writ petitioner we find it rather necessary to enhance the amount of costs.

The division bench of Justice Dinesh Maheshwari and Justice Hrishikesh Roy found that there was no intent on the part of the writ petitioner to evade tax and rather, the goods in question could not be taken to the destination within time for reasons beyond the control of the writ petitioner. When the undeniable facts, including the traffic blockage due to agitation, are taken into consideration, the State alone remains responsible for not providing smooth passage of traffic.

“The High Court has awarded costs to the writ petitioner in the sum of Rs. 10,000/- in relation to tax and penalty of Rs.69,000/- that was sought to be imposed by the petitioner No.2. In the given circumstances, a further sum of Rs. 59,000/- is imposed on the petitioners toward costs, which shall be payable to the writ petitioner within four weeks from today. This would be over and above the sum of Rs. 10,000/- already awarded by the High Court,” the Apex Court said.

ASSISTANT COMMISSIONER (ST) & ORS. vs M/S SATYAM SHIVAM PAPERS PVT. LIMITED & ANR.

CITATION: 2022 TAXSCAN (SC) 123

To Read the full text of the Order CLICK HERE

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