Penalty of Rs. 5000 for expired e-way bill does not imply tax evasion, vehicle can be released: HC

Case Details: Tvl.Thiruvannamalaiyar Transport v. Deputy State Tax Officer - [2023] 147 taxmann.com 213 (Madras)

Judiciary and Counsel Details

• • M. Sundar, J.
  • B. Raveendran for the Petitioner.
  • T.N.C. Kaushik, Adv. for the Respondent.

Facts of the Case

The truck of the petitioner was intercepted by the department and it was detained on the ground that e-way bill was expired. It filed writ petition against the detention of vehicle and goods by contending that there was break down of truck and extension of e-way bill could not be done since portal was blocked.

High Court Held

The Honorable High Court noted that as per facts and circumstances of the case, there would have been no revenue loss to the State if the truck had reached the destination without being intercepted since expiry of e-way bill would not create any scope for evasion. However, as per Circular No. 10/2019 dated 31.05.2019, penalty of Rs.5000 to be levied on expiry of e-way bill if there would be no tax evasion. Thus, it was held that the impugned proceeding was to be set aside and the petitioner was directed to pay Rs.5000 as penalty.