E-way Bill Dispute: Taxpayer Granted Conditional Appeal Relief with 15% Tax Payment Under GST Regulations

HC ruled on a GST dispute involving E-way bill discrepancies and tax assessment. The court directed the petitioner to pay 15% of disputed tax and allowed filing of an appeal within two weeks, despite initial delay. The Appellate Authority was instructed to accept the appeal if filed within the specified timeframe, effectively providing relief to the taxpayer while ensuring partial tax compliance.

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Issues involved:
The issues involved in this case include the validity of the order issued by the respondent reducing the interest portion alone of the petitioner, discrepancies in the generation of E-way bills during the period 2018-19, and the delay in filing an appeal challenging the order passed by the respondent.

Validity of Order:
The petitioner, an assessee under GST law, challenged the respondent's order reducing the interest portion alone. The respondent demanded tax, penalty, and interest for discrepancies in E-way bills generated during 2018-19. The petitioner argued that the interest was calculated incorrectly, leading to the rectification order reducing the interest amount. The petitioner claimed ignorance of the proceedings due to financial constraints and the termination of their Accountant in 2021.

Discrepancies in E-way Bills:
The respondent alleged that the petitioner's employee generated duplicate E-way bills for the same invoice, resulting in discrepancies. However, the petitioner contended that only one consignment was sent for each invoice, and the GST collected was duly paid to the department. The petitioner attributed the error to technical challenges in the portal and the inexperience of the employee handling E-way bill generation.

Delay in Filing Appeal:
The Additional Government Pleader argued that there was a significant delay in filing an appeal against the respondent's order, exceeding the prescribed limitation period. The Court noted the delay and directed the petitioner to pay 15% of the disputed tax before a specified date to enable them to file an appeal within two weeks. The Court instructed the Appellate Authority to accept the appeal without insisting on the limitation period if filed within the stipulated timeframe.

Conclusion:
The Court directed the petitioner to pay a percentage of the disputed tax by a specified date and allowed them to file an appeal within two weeks, despite the delay. The Court emphasized that the Appellate Authority should entertain the appeal if filed within the prescribed timeframe. The writ petition was disposed of with the above directions, and no costs were awarded.

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