Imposition of 200% penalty for expired e-way bill

Imposition of 200% penalty for expired e-way bill was harsh if vehicle suffered a breakdown during course of journey: HC

➡️ An e-way bill for a vehicle carrying dehydrated coal tar expired after the vehicle experienced three breakdowns during its journey.

➡️ The vehicle was intercepted, and a show cause notice was issued to the assessee, who responded.

➡️ The Adjudicating Authority imposed a penalty of 200% of the assessable value, despite no allegation of tax evasion.

➡️ The Authority failed to address specific objections and did not reject the assessee’s response to the show cause notice.

➡️ The penalty was reduced to Rs. 1 lakh due to leniency, though the assessee’s failure to extend the e-way bill for four days was noted.

✔️ Calcutta HC – Ashish Kumar Sharma v. Deputy Commissioner, State Tax, South Bengal, Howrah [F.M.A. NO. 504 OF 2024 & I.A. NO. CAN 01 OF 2024]