Technical lapse in e-way bill compliance cannot sustain penalty absent evidence of tax evasion in export goods case.

Non-filling of Part-B of an e-way bill was treated as only a technical lapse where the goods were supported by tax invoices, e-way bill and bilti, and the record showed that they crossed the Indian frontier and were received in Bangladesh with customs seals. In the absence of material indicating an attempt to evade tax, penalty was not justified. The penalty order and the appellate order were therefore quashed in favour of the assessee.

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Issues: Whether penalty could be sustained merely because Part-B of the e-way bill was not filled up, when the goods were found to be exported to Bangladesh and no intent to evade tax was attributable.

Analysis: The goods were accompanied by tax invoices, e-way bill and bilti, and the record showed that after release they crossed the Indian frontier and reached Bangladesh, where customs seals evidenced receipt of the consignment. On those facts, non-filling of Part-B of the e-way bill was treated as a technical breach. In the absence of material showing an attempt to evade tax, penalty could not be justified.

Conclusion: The penalty order and the appellate order could not be sustained and were quashed in favour of the petitioner.

Ratio Decidendi: Where export goods have crossed the border and reached their destination, mere non-filling of Part-B of the e-way bill is a technical lapse and, by itself, does not establish intent to evade tax or justify penalty.

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