Zero-rated exports: E-way bill expiry from transport breakdown precludes imposition of penalty under Section 129(1)(a).

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Where exported goods are zero rated and no tax is payable, a procedural contravention of Rule 138 (expiry of an E-way bill) without evidence of intent to evade tax does not support computation or imposition of penalty under Section 129(1)(a). Applying Coordinate Bench reasoning, the expiry caused by a vehicular breakdown shortly before interception was a transport mishap and not a tax-evasion device; therefore harsh penal consequences under Section 129(3) were unsustainable. The impugned APL 04 orders were quashed and the penal amount was directed to be refunded with interest within twelve weeks.....