TaxTMI 
TaxTMI 
2026 (9) TMI 1421
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....The writ petitioners have their principal place of business at Burabazar, Kolkata. They are engaged in the retail business of transmission shafts, pumps for liquids, electric motors, and related goods. On May 7, 2022, the petitioners, acting as consignors, supplied pumps for liquids, liquid elevators, and parts of centrifugal pumps to the Durgapur Steel Plant of Steel Authority of India Limited (SAIL), the consignee. It is not in dispute that the petitioners caused the movement of the goods through a vehicle and generated a valid e-way bill on May 7, 2022, at 01:09 PM. The e-way bill was valid for 180 kms until 11:59 PM on May 8, 2022. During transportation, the vehicle was intercepted by the Deputy Commissioner, State Tax, Bureau of Inv....
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....alty at the rate of 200% of the tax payable is not justified. It was further submitted that, in the present case, no discrepancy or irregularity was alleged by the department except that the e-way bill had expired prior to completion of transportation. The vehicle in the present case was intercepted on May 9, 2022, at 8:50 AM, at a petrol pump located approximately 10 kms away from the destination. The e-way bill had expired on May 8, 2022, at 11:59 PM. Before the authority, it was the case of the petitioners that, during the movement of the goods, the vehicle experienced some "technical snag" and the person in charge of the vehicle had to halt the vehicle for approximately three hours for routine maintenance. Section 129 of the WBGST....
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.... has been given a latitude of 8 hours to seek for such extension. In the present case, the petitioners could have extended the validity period of the e-way bill within eight hours, i.e., until 8:00 AM on May 9, 2022. Admittedly, the vehicle was intercepted at 8:50 AM. Therefore, the delay in renewing the e-way bill was approximately 50 minutes. The judgments relied upon by learned counsel for the petitioners indicate that a Division Bench of the High Court has set aside the imposition of a 200% penalty in cases involving failure to renew the e-way bill within the stipulated time period under similar circumstances. Learned counsel appearing for the revenue, however, relied upon a judgment of a Division Bench of the Calcutta High Cou....