Penalty Order Passed Without Hearing to Be Set Aside Since E-way Bill Was Downloaded Prior to Interception of Vehicle | HC

Case Details: Mid Town Associates v. Additional Commissioner - [2024] 162 taxmann.com 736 (Allahabad)

Judiciary and Counsel Details

• • Shekhar B. Saraf, J.
  • Suyash Agrawal, Adv. for the Petitioner.
  • Arvind Kumar Mishra, Standing Counsel for the Respondent.

Facts of the Case

The petitioner was a registered dealer and it received a notice for non-availability of e-way bill at the time of interception of goods. The department had detained the truck on the ground of presumption that the goods were being transported with the intention to evade tax due to the non-production of E-Way Bill and imposed penalty.

It filed appeal against the penalty order but the appeal was rejected. It filed writ petition against the order and contended that the goods were being transported with E-way bill and no opportunity of hearing was provided before passing the penalty order.

High Court Held

The Honorable High Court noted that the petitioner had downloaded the e-way bill for the goods in question before the interception of goods. The penalty order was passed without giving an opportunity of hearing to the petitioner and it was a gross violation of the principles of natural justice. Therefore, the Court held that the imposition of penalty was not justified and the penalty order was liable to be set aside.