Eway Bill Generation

[VIGNESH]

Dear Exprts.Kindly Clarrify. During financial year 2019-2020 multiple Eway bills were failed to be generated. But all supplies were inter state and within 10 kms radius and was to sister concern . Will there be general penalty or it will be for each Eway bill? Help me with any caselaw that i can quote.

[Shilpi Jain]

The law lacks clarity on this. However, for e way bill there is a specific penalty u/s 129. So general penalty should not be applicable.

Also do make submissions to show that mutiple attempts to generate EWB were failed. This should also not lead to penalty.

[Ganeshan Kalyani]

The penalty is for each instance. 

[KASTURI SETHI]

If you can prove that there is no loss of revenue, this is a procedural/technical lapse only and nothing else. At present no specific case law in favour of the assessee is available. However, it is suggested that you may delay the adjudicating proceedings legally as far as possible. By the time the case is adjudicated, you may be come by some case law in your favour by High Court or Supreme Court.

Penalty cannot be imposed upon without personal hearing as per Section 129 (4) of the CGST Act and you can avail three adjournments as per Section 75 (5) of the Act. Three adjournments means four opportunities for personal hearing.

 I also agree with both experts.

[Sadanand Bulbule]

Dear Sir

Penalty under Section 129 applies only to the consignment of goods intercepted in "transit" for violation of any provisions of Section 68 read with Rule 138. In your case, supplies being in the nature of inter-state for 2019-2020, generation of E-way bill was mandatory. So distance of 10 kms does not help out overcome such lapse and penalty under Section 122[1][xiv] can be levied in respect of taxable goods not covered by specified documents. But you can justify your sincere attempts to generate the same, but for technical glitches it was not possible. Some times facts speak louder than law.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

               Sir,   I agree with your  views but  the party must have proof regarding technical glitches in order to prove their bona fides.

AI Summary

E-way bill non-generation risks statutory penalties; document technical failures and invoke procedural hearing rights to mitigate exposure.
Failure to generate e-way bills for interstate supplies exposes the taxpayer to penalties either under the regime for consignments intercepted in transit or under provisions for taxable goods without prescribed documents, and authorities may treat each instance separately. Taxpayers should document repeated attempts and technical glitches and invoke absence of revenue loss as a defence. Procedural safeguards include a mandatory personal hearing before penalty and entitlement to adjournments, so assembling proof of bona fides and seeking case law support is recommended.