Supreme Court Reduces Excessive E-Way Bill Penalty from 200% to Rs.50,000, Balancing Technical Violation with Fair Penalty

The SC modified a 200% penalty imposed for an expired e-Way Bill. Upon finding the penalty excessive, the court reduced it to Rs.50,000 covering both CGST and WBGST. The appellants were directed to pay from their bank guarantee, with authorities to discharge the remaining balance upon payment, recognizing the technical violation while providing proportionate relief.

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Issues involved: Interpretation of penalty under Section 129 of the CGST Act and WBGST Act for failure to renew e-Way Bill leading to detention of goods.

Summary:

Issue 1: Allegation and Penalty Imposition
The appellants' goods, en route to Assam, were detained due to the expiration of the e-Way Bill on 18.03.2022. The goods were later transported with a new e-Way Bill. A 200% penalty was imposed under Section 129 of the CGST Act and WBGST Act for not renewing the expired e-Way Bill.

Issue 2: Validity of e-Way Bill
At the time of interception on 25.03.2022, the appellants possessed a valid e-Way Bill, meeting the requirements of Section 129 of the Act. The main error was the failure to renew the expired e-Way Bill.

Issue 3: Penalty Modification
The Court acknowledged the violation but deemed the 200% penalty excessive. The appellants were directed to pay a reduced penalty of Rs.50,000, covering both CGST and WBGST. The amount was to be recovered from the bank guarantee furnished by the appellants, with the remaining balance discharged by the authorities upon payment.

Separate Judgment:
A corrigendum order was issued in M.A.T. 1011 of 2023, dated 23-6-2023, involving M/S BITUMIX INDIA LLP & ANR. vs. THE DEPUTY COMMISSIONER OF REVENUE, STATE TAX, BUREAU OF INVESTIGATION & ORS.

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