2022 (7) TMI 1384 - HC - GST

Penalty Under WBGST Act Set Aside After Vehicle Breakdown Caused 18-Hour Delay Beyond E-Way Bill Expiry

Ramji Jaiswal & Anr Versus State Tax Officer, Bureau of Investigation (South Bengal) Kharagpur Zone & Ors.

Ramji Jaiswal & Anr Versus State Tax Officer, Bureau of Investigation (South Bengal) Kharagpur Zone & Ors. - [2023] 108 G S.T.R. 366 (Cal) Issues: Challenge to penalty for transporting vehicle after expiry of e-way bill.Analysis:The petitioners challenged the impugned order of the appellate authority under the WBGST Act, which confirmed the penalty imposed by the adjudicating authority for transporting a vehicle after the expiry of the e-way bill. The e-way bill expired on 2nd August, 2021, at 11.59 p.m., and the vehicle was intercepted at 6.45 p.m. on 3rd August, 2021, resulting in a time gap of about 18 hours. The petitioners argued that there was no intention to evade tax, citing a genuine breakdown of the vehicle as the reason for the delay. The petitioners relied on a previous order of the Court and a Division Bench decision to support their contention.The respondents, represented by learned advocates, failed to establish any deliberate or willful intention on the part of the petitioners to evade tax. They opposed the writ petition on the grounds of the availability of an alternative remedy. After considering the facts and circumstances of the case, as well as the two previous orders of the Court cited by the petitioners, the Court disposed of the writ petition (WPA 15469 of 2022) by setting aside the impugned orders of the appellate and adjudicating authorities. Consequently, the petitioners were granted the refund of the penalty, subject to compliance with legal formalities. The Court concluded the judgment with this observation, thereby closing the writ petition.