Vehicle Transport Penalty Overturned: Technical Violation Dismissed, No Tax Evasion Intent Proven Under E-Way Bill Regulations

HC allowed petitioners' challenge to penalty for transporting vehicle after e-way bill expiry. Despite technical violation, court found no deliberate tax evasion intent. Impugned order was set aside, with penalty refunded, based on previous judicial precedents and absence of willful misconduct by petitioners.

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Issues:
Challenge to impugned order of appellate authority under WBGST Act confirming penalty for transporting vehicle after expiry of e-way bill.

Analysis:
The petitioners challenged the impugned order of the appellate authority under the WBGST Act, which confirmed the penalty imposed by the adjudicating authority for transporting a vehicle after the expiry of the e-way bill. The e-way bill had expired on 16.10.2022 at 11.59 P.M., and the vehicle was intercepted at 6.05 P.M. on 17.10.2022, with a time gap of about 18 hours. The petitioners contended that there was no intention to evade tax and cited a previous order of the Court in a similar case. They also mentioned a Division Bench decision in support of their argument.

The advocate for the petitioners highlighted that there was no deliberate intention to avoid tax on the part of the petitioners. He emphasized the genuine problem of a breakdown of the vehicle as the reason for the delay in transportation. On the other hand, the advocate for the respondents failed to establish any deliberate or willful intention on the part of the petitioners to evade tax. The opposition to the writ petition was based on the availability of an alternative remedy.

Considering the facts and circumstances of the case, along with the two previous orders of the Court cited by the petitioners, the High Court disposed of the writ petition (WPA 9308 of 2024). The impugned order of the appellate authority and adjudicating authority was set aside, and as a consequence, the petitioners were entitled to a refund of the penalty imposed, subject to compliance with legal formalities. The Court concluded the judgment with this observation, thereby concluding the writ petition.

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