Penalty Order Rightly Set Aside Due to No Discrepancy Between Invoice & E-way Bill | SC

Case Details: Additional Commissioner Grade-2 v. Sleevco Traders - [2023] 152 taxmann.com 418 (SC)

Judiciary and Counsel Details

• • S. Ravindra Bhat & Aravind Kumar, JJ.
  • Bhakti Vardhan Singh, AOR for the Petitioner.

Facts of the Case

The department detained goods and vehicle of the assessee and levied penalty on the ground that documents were not proper without considering the submission of assessee that E-Way Bill had been generated by seller in bill to ship to model mentioning place of delivery of ultimate buyer in addition to consignee assessee. Therefore, it challenged the demand and filed writ petition.

High Court Held

The Honorable High Court noted that authorities ought not to have dragged assessee into litigation in absence of any intention to evade GST as all statutory documents were accompanying goods. The Court also set aside demand of GST and imposition of penalty on assessee since E-Way Bill had been generated by seller in bill to ship to model by mentioning place of delivery of ultimate buyer in addition to consignee assessee. Therefore, the levy of penalty was not sustainable since no discrepancy was found between goods mentioned in invoice and E-way Bill and cost was imposed on State which was payable to assessee.

The department filed special leave petition against the decision of High Court. The Apex Court noted that cost was rightly imposed on State since there was no infirmity in the judgment of the High Court. The Honorable Supreme Court also appreciated the decision of the High Court and dismissed the petition.