LI Network
Published on: January 19, 2024 at 17:13 IST
The Allahabad High Court recently ruled that the absence of information in Part-B of the e-way bill, when the accompanying invoice contains all vehicle details, amounts to a technical error without any intention to evade tax. The Court dismissed the penalty order imposed under Section 129(3) of the UP Goods and Service Tax Act, 2017.
The petitioner contested the penalty order, arguing that the goods’ accompanying bilty included truck details, and there was no discrepancy in the transported goods’ quantity or quality. The Department did not suggest any intent to evade tax. Despite the appeal, the penalty order was upheld.
The petitioner’s counsel referred to prior judgments, including VSL Alloys (India) Pvt. Ltd v. State of U.P. and M/s Citykart Retail Private Limited v. Commissioner Commercial Tax and Another, highlighting that the mere omission of Part-B in the e-way bill, without intent to evade tax, does not warrant a penalty under Section 129(3) of the UP GST Act.
Justice Shekhar B. Saraf, relying on precedent, stated, ‘…the error committed by the petitioner was of a technical nature only and without any intention to evade tax. Once this fact has been substantiated, there was no requirement to levy penalty under Section 129(3) of the Act.’
Consequently, the Allahabad High Court quashed the penalty order under Section 129(3) of the UP GST Act
