Penalty Shouldn’t Be Levied If There Was No Evasion of Tax & Only Part B of the E-Way Bill Was Not Filled Mistakenly | HC

Case Details: Abilities Pistons and Rings Ltd. v. Additional Commissioner, Circle-2 (Appeal) Commercial Tax - [2024] 159 taxmann.com 326 (Allahabad)

Judiciary and Counsel Details

• • Shekhar B. Saraf, J.
  • Suyash Agarwal & Ankur Agarwal for the Petitioner.
  • C.S.C. for the Respondent.

Facts of the Case

The petitioner had imported goods from China and paid IGST at rate of 28% at the time of import. The vehicle and goods were detained and the invoice and the E-Way Bill were accompanying the goods and the description of the goods matched with the invoice but it was found that Part B of the E-Way Bill was not filled up at the time of interception.

The department levied penalty since Part B of the E-Way Bill was not filled. It filed writ petition and contended that IGST had already been paid and there was no involvement whatsoever of any mens rea for evasion of tax.

High Court Held

The Honorable High Court noted that the goods were imported from China and IGST was paid at the time of import. It was further noted that when IGST had already been paid to the custom authorities while the goods were being imported, no further tax was leviable under GST Act.

Moreover, the petitioner filled up Part B of the E-Way Bill immediately after the interception, that is, much before the order of detention was passed. Thus, the Court held that the impugned detention order was to be quashed and set aside since IGST had already been paid and there was no evasion of tax.

List of Cases Reviewed

• • M/s Hindustan Herbal Cosmetics v. State of U.P. and Others and M/s Falguni Steels v. State of U.P. and Others (para 5) followed