Penalty paid for Non compliance of E way Bill

[V Rajalakshmi]

The vehicle was detailed for a reason that there was a mismatch between E way bill and invoice and slapped a penalty but no written notice or order. The vehicle was released after showing proof of payment of the penalty challan, Now the amount paid under penalty is lying in the electronic cash ledger. How to set off the from ECL or whether such sum can be used by a person for making payment of regular tax liability.

[PRIYACHARAN SR]

Merely depositing penalty amount in Electronic cash ledger doesnt amount to discharge of penalty. The penalty amount has to be paid via Form DRC - 03. In form DRC - 03 u need to quote the penalty order number and then discharge the penalty by debiting electronic cash ledger.

[V Rajalakshmi]

Thank you Mr Priyacharan for your reply. Actually, the company has neither received any manual order nor any order or notice found in the portal. Should they use voluntary payment in DRC 03 or any section to be selected at the time of making the payment?

[Shilpi Jain]

Hope u have Checked the portal to see if any penalty order has been passed

AI Summary

Penalty payment: deposit in electronic cash ledger does not discharge liability; payment must be made via Form DRC 03. Deposit of a penalty into the electronic cash ledger does not discharge the penalty; the taxpayer must pay via Form DRC-03 quoting the penalty order number and debit the electronic cash ledger. If no penalty order is received or visible on the portal, the taxpayer should check the portal before making payment and consider whether voluntary payment in DRC-03 is appropriate.