No Intention to GST Evasion: Calcutta HC quashes Penalty for using Expired E-Way Bill [Read Order]

A single bench of the Calcutta High Court has quashed an order imposing a penalty for expiry of the e-way bill as it was proved that there was no intention to evade tax on the part of the taxpayer.

Earlier, the Commissioner (Appeals) confirmed the original order passed by the adjudicating authority under section 129 of the West Bengal Goods and Services Act, 2017 for the detention of the goods in question on the grounds that the e-way bill relating to the consignment in question had expired one day before, and that the goods were detained on the grounds that the e-way bill has expired which is even less than one day and extension could not be made. The petitioner challenged the impugned order before the High Court.

The counsel for the petitioner submitted that delay of a few hours even less than a day of expiry of the validity of the tenure of the e-way bill was not deliberate and willful and was due to break down of the vehicle in question and there was no intention of any evasion of tax on the part of the petitioner. The counsel for the Department could not make out a case against the petitioner that the aforesaid violation was willful and deliberate or with a specific material that the intention of the petitioner was for evading tax.

Justice Md. Nizamuddin, while quashing the order, held that “this writ petition being WPA No.11085 of 2021 is disposed of by setting aside the impugned order of the appellate authority dated March 18, 2021, as well as the order of the adjudicating authority dated September 11, 2019, and as a consequence, the petitioner will be entitled to get the refund of the penalty and tax paid on protest subject to compliance of all legal formalities.”

To Read the full text of the Order CLICK HERE

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