GST penalty for expired e-way bill was unjustified where delay was explained by traffic blockage and no tax evasion was shown.

200% GST penalty for detention was found unjustified where the only basis was expiry of the e-way bill. The Court accepted the uncontroverted explanation that the delay resulted from traffic blockage, noted that the statutory scheme allows extension of the e-way bill within the prescribed time, and found no material showing discrepancy or intent to evade tax. In the absence of mala fides, mechanical imposition of penalty could not be sustained, and the assessee succeeded.

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Issues: Whether 200% penalty under the GST law was justified solely because the e-way bill had expired, where the delay was explained as arising from traffic blockage and no discrepancy or intention to evade tax was shown.

Analysis: The only departmental basis for detention and penalty was expiry of the e-way bill. The Court noted that the statutory framework permits extension within the prescribed time and that the explanation of delay due to traffic blockage was not disputed. There was nothing on record to indicate any attempt to evade tax. In these circumstances, imposition of penalty at 200% in a mechanical manner was held to be unjustified, particularly in the light of the same statutory scheme governing extension of e-way bills and the absence of mala fides.

Conclusion: The penalty could not be sustained and the assessee succeeded.

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