PENALTY U/s 129
Penalty Under Section 129 of GST: Case Studies and Judicial Interpretations
The GST Department levies penalties in cases where e-Way Bill are expired, but in my humble view, merely the expiration of EWB does not proves intention to evade tax. Penalty should be levied after due consideration of facts in each case and not mechanically.
- Telangana High Court
1.1 Satyam Shivam Papers Pvt. Ltd.
Where auto trolley of petitioner-distributor which was on its way for delivery of paper to buyer/consignee was detained by Deputy State Tax Officer on ground that validity of E-way bill had expired and petitioner had to
pay an amount towards tax and penalty for release of goods, no presumption could be drawn that there was an intention to evade tax merely on account of non-extension of validity of EWB by petitioner and, therefore, order levying tax and penalty on petitioner was to be set aside.
Note: This judgment was upheld by Supreme Court in 2022.
- Allahabad High Court
2.1 Globe Panel Industries Pvt. Ltd.
Where out of two e-way bills, one had expired due to breakdown of vehicle but there was technical violation of non-generation of a fresh e-way bill, since goods in vehicle matched description of e-invoices and
e-way bills and authorities could not indicate any intention on part of assessee to evade tax, mere such a technical violation by itself could not lead to imposition of penalty.
- Calcutta High Court
3.1 Maxxcab Wires & Cables Pvt. Ltd.
Where assessee had challenged order imposing penalty for transporting vehicle after expiry of e-way bill, since revenue could not make out any case against assessee that there was any deliberate or wilful intention
of assessee to avoid and evade tax, order imposing penalty was to be set aside.
3.2 Karan Singh
Order demanding tax and penalty for expiry of e-way bill was not sustainable as during detention within an hour of expiry of e-way bill, department had failed to inform transporter about his right to seek extension of e-way bill within 8 hours.
- Karnataka High Court
4.1 M.S. Metals & Steels Ltd.
Goods had reached destination in time but were unloaded only after expiry of E-way bill as driver of vehicle had fallen asleep.
Since documents to prove that vehicle reached destination before expiry of e-way bill were not considered before levying tax and penalty, matter was to be re-adjudicated afresh.
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