Tax Penalty Overturned: Technical E-Way Bill Address Error Deemed Insufficient to Impose Punitive Measures Against Taxpayer

HC allowed petitioner's challenge to tax imposition based on technical E-Way Bill address error. Court emphasized absence of mens rea and held that mere procedural mistakes should not trigger tax penalties. Order quashed, directing refund of deposited amount within one month, with consequential reliefs granted.

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Issues involved: Challenge to order dismissing appeal on technical error in E-Way Bill address leading to imposition of tax without mens rea.

Details of Judgment:

Issue 1: Error in E-Way Bill address and imposition of tax without mens rea
The petitioner challenged the order dismissing the appeal due to an error in the consignee's address on the E-Way Bill, which led to the imposition of tax. The Court noted that besides the address error, the goods matched the invoice description, and there was no indication of mens rea for tax evasion by the petitioner. The Court emphasized that mens rea is essential for imposing a penalty for tax evasion, and mere technical errors should not result in penalties. This principle was supported by previous judgments such as M/s Modern Traders v. State of U.P., M/s Galaxy Enterprises v. State of U.P., and Hindustan Herbal Cosmetics v. State of U.P.

Decision:
The Court quashed and set aside the orders dated February 22, 2020, and September 8, 2019. It directed the refund of the amount deposited by the petitioner within one month and ordered other consequential reliefs to follow. The writ petition was allowed accordingly.

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