HC correctly set aside tax demand & penalty for expiry of e-way bill as goods not delivered in time due to genuine reason: SC

Case Details: Assistant Commissioner (ST) v. Satyam Shivam Papers (P.) Ltd. - [2022] 134 taxmann.com 241 (SC)

Judiciary and Counsel Details

• • Dinesh Maheshwari and Hrishikesh Roy, JJ.
  • P. Venkat Reddy, Prashant Tyagi and P. Srinivas Reddy, Advs. for the Petitioner.

Facts of the Case

The auto trolley of assessee-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. The tax and penalty was levied and it filed writ petition before the High Court.

The Honorable High Court observed that there was no material before revenue to come to conclusion that there was evasion of tax by assessee. Merely on account of non-extension of validity of E-way bill by assessee or auto trolley driver, no presumption could be drawn that there was an intention to evade tax and therefore, order levying tax and penalty was to be set aside. The revenue filed special leave petition before the Apex Court.

Supreme Court Held

The Honorable Supreme Court observed that goods in question could not be taken to the destination within time for reasons beyond the control of assessee including traffic blockage due to agitation. The State alone remains responsible for not providing smooth passage of traffic. Therefore, it was held that the order by High Court setting aside tax demand and penalty for expiry of e-way bill when goods could not be delivered within validity period because of traffic blockage was correct.