E way Bill non generation

[VIGNESH]

Sir. Kindly clarrify,Goods were moved by vehicle driver with Delivery Challan and he moved to weigh bridge and failed to collect E way bill at 4.50 pm and Eway bill was raised by the company by 5.01 pm. Meanwhile vehicle was intercepted by rovig squad and penalty was levied. kindly clarrify any probability of appeal and getting back penalty paid as refund

[Padmanathan KV]

Can you clarify the full facts sir?

From where to Where the goods where moving?

What time was the movement Started?

What time was the goods intercepted?

Was e-way bill generated at the time of interception?

[Padmanathan KV]

Pls find the FAQ on E-way Bill dated 16-6-2019 issued in CBIC website:

Whether the e-way bill is required for movement of consignment for weighment to the weighbridge?

No e-Way bill is required for movement of goods upto a distance of 20 Km from the place of business of consignor to a weighbridge for weighment or from the weighbridge back to the place of business of consignor, within the same State, subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with Rule 55.

Check whether your case is covered under the same. if so, pls show this FAQ at https://cbic-gst.gov.in/pdf/18062019-FAQs-EwayBill-Faq.pdf

[VIGNESH]

sir

From where to Where the goods where moving?- Goods were moving to weighbridge under delivery challan but no value mentioned and address of consignee was mentioned in delivery challan

What time was the movement Started? 4.35 PM

What time was the goods intercepted? 4.50 PM

Was e-way bill generated at the time of interception? yes sir, Eway bill generated by 5.01 PM

[Padmanathan KV]

if the weighbridge is within 20 Km in same state, no e-way bill required as per CBIC FAQ. Make use of the same.

[VIGNESH]

Thank u sir.but in delivery challan consignee name was mentioned instead of mentioning goods were moved for weigh bridge, will there be any issue on the same?

[Padmanathan KV]

If you are otherwise able to prove that goods was going to weighbridge, it should not be a problem.

[VIGNESH]

sir.Value of goods not mentioned in DC! any inputs on this?

[Padmanathan KV]

If the Delivery Challan is defective and there is no accompanying e-way bill also, Department is bound to levy penalty on interception. In case any notice has been already issued to you, it is advisable to consult an expert to file a reply based on the exact allegations of the Department.

[KASTURI SETHI]

Sh.Vignesh Ji,

Minor error in e-way bill is a human error. Penalty cannot be imposed----Delhi High Court

Reported as in the case of  2018 (12)TMI 1004- RAI PREXIM INDIA PRIVATE LIMITED VERSUS STATE OF KERALA REPRESENTED BY ITS SECRETARY (TAXES), THIRUVANANTHAPURAM, THE COMMISSIONER OF STATE GST KERALA STATE GOODS AND SERVICE TAX DEPARTMENT, THIRUVANANTHAPURAM, ASSISTANT STATE TAX OFFICER SQUAD NO. VII, KERALA STATE GOODS AND SERVICE TAX DEPARTMENT, PALAKKAD, AMITY ROCK PRODUCTS PVT. LTD., THE UNION OF INDIA REPRESENTED BY THE SECRETARY (REVENUE) , NEW DELHI, GOODS AND SERVICE TAX COUNCIL THROUGH ITS CHAIRPERSON, DEPARTMENT OF FINANCE, NEW DELHI, GOODS AND SERVICE TAX NETWORK THROUGH ITS CHAIRMAN, EAST WING, NEW DELHI, AND CHIEF COMMISSIONER OF CENTRAL TAXES CENTRAL GST OFFICE, KERALAD.

[KASTURI SETHI]

Also see the definition and scope of 'human error' on Wikipedia which will be a plus point in this case in your favour.

[Shilpi Jain]

All said and done the only way to defend the penalty levied is approaching the HC. At the HC a liberal view is taken sometimes where there is no evasion of tax the penalty is kept at minimum.

[VIGNESH]

Thank u all for providing inputs on the issue. Can u pls explain Rule 138(D) can i take advantage of this rule as time of interception was 4.50 pm and E-way bill generated by 5.01 pm, in my case it is well within 30minutes , is my undertanding correct?

[Padmanathan KV]

Rule 138D provides for facility for transporter to upload the information regarding the detention of vehicle. In my humble opinion, this Rule is not of any help in your case here.

[KASTURI SETHI]

Sh.Vignesh Ji,

Rule 138 (D) is not relevant here.

[Ganeshan Kalyani]

Mainly the movement of goods should be legal. The same is proved when the documents are properly made and carried with the vehicle. If there is any suspicious then the officer is bound to detain the vehicle. You know well about the transaction but officer is not known about it. So he will go by the document prevailing with the driver and will make his view based on it.

AI Summary

E-way bill requirement: defective delivery challan or missing e-way bill can lead to detention and penalty, subject to factual defence.
Movement to a weighbridge without an e-way bill may be exempt if the weighbridge is within the prescribed local distance and the movement is accompanied by a proper delivery challan; however, where the delivery challan is defective (e.g., shows consignee or omits value) or no e-way bill accompanies the consignment at interception, officers may detain the vehicle and levy penalty. Procedural remedies include filing a document-based reply and, if warranted, judicial review; Rule 138D is not a defence to avoid penalty for defective documentation.