Hi,
In February 2025, we have generated penalty challan due to wrong e way bill. However the amount is still lying in cash ledger and we have not paid through DRC 03. No penalty order is received from department. So, now is it required to pay without any penalty order. If not, then how can we utilize the amount lying in penalty section of cash ledger.
Taxpayer Navigates E-Way Bill Penalty Complexity: Cash Ledger Balance Remains Unresolved Without Official Penalty Order A taxpayer generated a penalty challan for a wrong e-way bill in February 2025, with the amount remaining in the cash ledger's penalty section. No official penalty order was issued. Experts advised that payment is not mandatory without a formal demand order. Options include waiting for a potential order, voluntarily settling through DRC-03, or seeking a refund if no order is ultimately issued. The cash ledger balance can be used for future penalty payments or potentially transferred to other tax heads. (AI Summary)
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