2024 (7) TMI 916 - HC - GST

Court Overturns Penalty for E-Way Bill Technical Error; Finds No Intent to Evade Tax, Orders Security Refund.

M/s Ram Krishna Gupta Versus State of U.P. And 2 Others

M/s Ram Krishna Gupta Versus State of U.P. And 2 Others - TMI Issues:Challenge to penalty imposed for not filling Part-B of the E-way bill.Detailed Analysis:The petitioner challenged the penalty imposed for not duly filling Part-B of the E-way bill, contending that all required documents were in order, and there was no intention to evade tax, citing it as a technical error. The petitioner relied on judgments to support the argument, emphasizing that no adverse inference should be drawn solely based on the incomplete Part-B of the E-way bill.The court examined the case and found that all necessary documents, including tax invoice, e-way bill, and R.R., were in order. There was no evidence of tax evasion or discrepancies in the goods transported. The court referenced previous judgments to highlight that the mere absence of Part-B of the E-way bill does not indicate an intent to evade tax. The court emphasized that technical errors should not lead to penalties under Section 129(3) of the Act.The court specifically referred to judgments in similar cases, where it was held that the absence of Part-B of the E-way bill did not establish an intent to evade duty, especially when supported by circulars from the Ministry of Finance addressing such issues. The court set aside the impugned orders and directed the return of any security deposited by the petitioner. The judgment concluded by allowing the writ petition and ordering the refund of any amount deposited by the petitioner within a specified timeframe.