TaxTMI 
TaxTMI 
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.
Penalty paid for Non compliance of E way Bill
11 Nov 2022 
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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. (AI Summary)
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. (AI Summary)