Court Overturns Penalties for Expired E-Way Bill, Citing No Tax Evasion or Malicious Intent, Emphasizes Contextual Application.

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....The High Court quashed the orders of the Appellate and Adjudicating Authorities imposing penalty on the petitioner for transporting goods after the expiry of the e-way bill. The Court held that while procedural compliance under the GST framework is crucial, penalties imposed purely for procedural lapses without evidence of tax evasion or malicious intent may not serve the legislative intent. Given the petitioner's compliance record and absence of any attempt to divert the goods or evade tax, the Court observed that imposing a penalty was unwarranted. The Court emphasized that rules, including those on e-way bill validity, should be applied contextually, taking into account the facts and intentions involved. The penalty imposed was found to be excessive and not aligned with the principles of natural justice.....