The High Court of Kerela has held that human error which can be detected by the naked eyes cannot be capitalised for penalisation.
Facts of the Case
The petitioner (M/s Rai Prexim India Pvt Ltd) had supplied goods worth Rs. 38,82,200 and accordingly raised the e-way bill for the same. However, in the e-way bill the place of supply was wrongly mentioned.
To correct the mistake of place of supply, they cancelled the e-way bill and raised a new e-way bill. In the new e-way bill, they corrected the place of supply but wrongly mentioned the amount as 3,88,220 instead of 38,82,200.
While the goods were in transit, these were detained by the department as the value mentioned in the new e-way bill was 3,88,200 whereas the actual value of the goods was 10 times i.e. 38,82,200.
High Court’s Order
“If a human error which can be seen by naked eyes is detected, such errors cannot be capitalised for penalisation,” the court said in its ruling. It also said that if the petitioner had paid the GST in accordance with the value as shown in the original bill, goods cannot be detained and shall be released to the petitioner.
Further it said that, on verification, if it is found that the petitioner had paid the GST in accordance with the value shown in first e-Way bill, the vehicle and the goods shall be released on executing a simple bond.
However, if it is found that the that GST has not been paid according to the value shown in the first e-Way bill, detained goods and vehicle need be released only on furnishing bank guarantee.