Expiry of the E-way Bill – Whether authenticity of transaction can be disputed?
There are often the delay in delivery of goods due to technical problem like raod accident, theft of vehicle, etc. The question arises Whether authenticity of transaction can be disputed if there is an expiry of e-way bill.
The simple answer remains is – No.
According to the Allahabad High Court, if an e-way bill is generated and not cancelled within the prescribed time, the Department cannot dispute the movement of goods and the authenticity of the transaction. This ruling emphasizes the importance of e-way bills in providing evidence and transparency in business transactions.
The court quashed a penalty order issued under Section 129(3) of the GST Act, recognizing that the purpose of e-way bills is to track goods movement and not to impose unnecessary penalties. This decision reinforces the role of e-way bills as a tool for monitoring and verifying the movement of goods.
In this case, a consignment experienced delays due to unforeseen circumstances, such as the vehicle getting stuck in mud, the court considered the circumstances and highlighted the availability of details on the GST portal.
The court held that the expiration of an e-way bill does not automatically question the movement of goods, as long as it is generated and not cancelled on time. This ruling provides clarity and certainty for businesses, ensuring that they are not unfairly penalized for circumstances beyond their control.
The case details is as under:
M/S Sun Flag Iron And Steel Company Limited vs. State Of U.P. And 3 Others
[WRIT TAX No. – 837 of 2023]
The copy of the order is as under: