2023 (6) TMI 750 - HC - GST

E-Way Bill Validity Upheld: No Penalty for Expired Document During National Holiday, Authorities Must Refund

M/s. Perfect Enterprise Versus State of West Bengal & Ors.

HC resolved dispute over e-way bill validity, finding no willful tax evasion. The court quashed tax authorities' orders imposing penalty for expired e-way ... Detention of goods alongwith vehicle - expired E-way bill - extension of the e-way bill sought within the time permitted, last day being national holiday - HELD THAT:- The issue as to whether the authority were justified in imposing tax and penalty on the ground that at the time of interception, the validity period of the e-way bill stood expired and came up for consideration before the Coordinate Bench of this Court in the case of M/S. HANUMAN GANGA HYDROPROJECTS PRIVATE LIMITED. VERSUS JOINT COMMISSIONER, STATE TAX AUTHORITY, SILIGURI CIRCLE & ANR. [2022 (7) TMI 603 - CALCUTTA HIGH COURT]. It was held by the Coordinate Bench of this Court that since it is not a case of willful attempt on the part of the writ petitioner to evade payment of tax, the orders passed by the Appellate Authority and the penalty were all set aside and quashed. In the present case also the e-way bill was valid up to May 2, 2022 and the vehicle of the petitioner reached Silliguri on May 2, 2022 before the expiry of e-way bill but due to national holiday on May 3, 2022, the stockyard was closed and in the early morning May 4, 2022 at 3:20 AM, the vehicle was intercepted at Bakuabari which is about 16/17 kilometers from the destination. There is no other allegation against the petitioner. Considering the peculiar facts of the case, this Court finds that there is no lack of bona fide on the part of the petitioner to state that there was wilful misconduct committed by the petitioner while transporting the goods. The order of the Appellate Authority dated January 31, 2023 and the order passed by the adjudicating authority dated May 12, 2022 are set aside and quashed - petitioner paid the penalty, is entitled to apply for refund, which shall be considered by the appropriate authority within a period of 15 days from the date on which such application is made and refund be effected, if there are no other legal impediment. Application allowed. Issues involved:The judgment involves issues related to the validity of an e-way bill, imposition of tax and penalty, and the justification for setting aside orders by the Appellate Authority and the Adjudicating Authority.Validity of e-way bill:The petitioner had purchased bitumen and the goods were in transit with an expired e-way bill due to the closure of the stockyard on a national holiday. The State Tax Officers detained the goods and imposed a penalty for the expired e-way bill. The petitioner argued lack of wilful misconduct and inability to revalidate the e-way bill due to the holiday.Imposition of tax and penalty:The authorities imposed tax and penalty due to the expired e-way bill, leading to the detention of the goods. The petitioner contested the imposition, stating no willful attempt to evade payment of tax and highlighting the circumstances of the case.Setting aside of orders:The judgment referred to a previous case where the Coordinate Bench set aside orders due to the lack of willful misconduct by the petitioner. In this case, the court found no lack of bona fide on the part of the petitioner and quashed the orders passed by the Appellate Authority and the Adjudicating Authority.Refund of penalty:The petitioner, having paid the penalty, was entitled to apply for a refund. The appropriate authority was directed to consider the refund application within 15 days and effect the refund if there were no legal impediments.Conclusion:The judgment allowed the writ application, setting aside the orders of the Appellate Authority and the Adjudicating Authority. The petitioner was granted the right to act on the basis of the judgment placed on the official website of the Court, and certified photocopies of the judgment were to be provided to the parties upon request after compliance with formalities.