Court sets aside tax penalty for expired E-Way bill, grants chance to represent case, mandates bank guarantee.

The court set aside the tax and penalty imposition on the petitioner for an expired E-Way bill during LPG cylinders transportation, granting them a chance to represent their case within two weeks. The assessing officer was directed to issue a fresh order considering the petitioner's submissions. The court mandated the petitioner to provide a bank guarantee for the tax and penalty amount, facilitating the goods and vehicle's release upon compliance. The judgment aimed to balance the petitioner's right to be heard with compliance and security concerns, ensuring a fair resolution.

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Issues:
Challenging tax and penalty imposition due to expired E-Way bill; Lack of notice to the petitioner; Opportunity for petitioner to represent the case before the assessing officer; Requirement of bank guarantee for release of goods and vehicle.

Analysis:
The petitioner contested an order by State GST authorities imposing tax and penalty amounting to Rs. 12,48,530 for an expired E-Way bill during the transportation of LPG cylinders. The petitioner argued that despite being the goods' owner, no notice was directly served, and their communications were disregarded. The petitioner, engaged in LPG cylinder manufacturing, claimed the breach was technical. Respondents contended that notice was given to the vehicle's driver, who failed to inform the petitioner, leading to the tax imposition. The court acknowledged the lack of a full opportunity for the petitioner to present their case and set aside the order, granting the petitioner a chance to represent within two weeks. The assessing officer was directed to issue a fresh order after considering the petitioner's submissions. The court emphasized releasing the goods and vehicle promptly, subject to the petitioner meeting specified conditions.

The court refrained from delving into the conflicting accounts, focusing on granting the petitioner a fair hearing opportunity. To facilitate the goods and vehicle's release, the court mandated the petitioner to provide a bank guarantee equivalent to 25% of the tax and penalty amount, with additional security for the remaining sum, satisfying the assessing officer. Once these conditions are met, the authorities are obligated to release the goods and vehicle promptly. The judgment aimed to balance the petitioner's right to be heard with the need for compliance and security, ensuring a just resolution to the dispute.

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