E-way bill Part-B delay and penalty reduction where technical lapse was promptly cured without any sign of tax evasion.

Detention of a vehicle and goods for delayed updation of Part-B of the e-way bill was examined against the facts of a brief technical delay. The updation was completed within two minutes of interception, its genuineness was not doubted, and the penalty order lacked cogent reasons. In the absence of any indication of tax evasion, the penalty was treated as excessively harsh on the exceptional facts. The penalty was therefore reduced substantially.

---

---

Issues: Whether detention of the vehicle and goods and imposition of penalty for non-updation of Part-B of the e-way bill were justified, and whether the penalty could be reduced in the facts of the case.

Analysis: The updation of Part-B was delayed due to a technical problem, but it was completed within two minutes of interception. The genuineness of the updation was not doubted, and the order imposing penalty did not record cogent reasons. In the absence of any indication of tax evasion, the penalty imposed was found to be excessively harsh in the exceptional facts and circumstances.

Conclusion: The penalty was reduced from Rs.8,71,074/- to Rs.50,000/-.

---