GST: Failure to generate e-way bill on time without having any poyential financial implications is a mere technical errors & should not be a ground for imposition of penalties

Loading

GST: Failure to generate e-way bill on time without having any poyential financial implications is a mere technical errors & should not be a ground for imposition of penalties.

 

Allahabad High court recently has held that i๐ง๐ญ๐ž๐ง๐ญ๐ข๐จ๐ง ๐ญ๐จ ๐ž๐ฏ๐š๐๐ž ๐ญ๐š๐ฑ ๐ข๐ฌ ๐š ๐ฆ๐ฎ๐ฌ๐ญ ๐š๐ง๐ ๐ญ๐จ ๐›๐ž ๐ฉ๐ซ๐จ๐ฏ๐ž๐ ๐›๐ฒ ๐๐ž๐ฉ๐š๐ซ๐ญ๐ฆ๐ž๐ง๐ญ. ๐…๐š๐ข๐ฅ๐ฎ๐ซ๐ž ๐ญ๐จ ๐ ๐ž๐ง๐ž๐ซ๐š๐ญ๐ž ๐ž-๐ฐ๐š๐ฒ ๐›๐ข๐ฅ๐ฅ ๐จ๐ง ๐ญ๐ข๐ฆ๐ž ๐ฐ๐ข๐ญ๐ก๐จ๐ฎ๐ญ ๐ก๐š๐ฏ๐ข๐ง๐  ๐š๐ง๐ฒ ๐ฉ๐จ๐ญ๐ž๐ง๐ญ๐ข๐š๐ฅ ๐Ÿ๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐ข๐ฆ๐ฉ๐ฅ๐ข๐œ๐š๐ญ๐ข๐จ๐ง๐ฌ is a m๐ž๐ซ๐ž ๐ญ๐ž๐œ๐ก๐ง๐ข๐œ๐š๐ฅ ๐ž๐ซ๐ซ๐จ๐ซ๐ฌ & ย ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ง๐จ๐ญ ๐›๐ž ๐š ๐ ๐ซ๐จ๐ฎ๐ง๐ ๐Ÿ๐จ๐ซ ๐ข๐ฆ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง ๐จ๐Ÿ ๐ฉ๐ž๐ง๐š๐ฅ๐ญ๐ข๐ž๐ฌ

The key observations were as under:

1. Only technical errors under tax laws without any financial implications must not be the foundation for the imposition of penalties

2.ย Mere technical errors, without having any potential financial implications, should not be the grounds for the imposition of penalties. The underlying philosophy is to maintain a fair and just tax system, where penalties are proportionate to the gravity of the offense. In taxation, the imposition of penalty serves as a critical measure to ensure compliance with tax laws and regulations.

3.ย The Court sees that there was no tax evasion intent on the part of the applicant since all details with a vehicle transporting information of the goods were mentioned in the tax invoices carrying the goods.

4.ย The department had erred in holding that intent to evade the tax was a critical element under the Uttar Pradesh Value Added Tax Act, 2008 but was done away withย under GST laws, the court ruled.

5.ย As per the court, establishing the tax evasion intention of the paramount acknowledgment in the tax regime to keep its virtue

6.ย Case Reference: M/S Falguni Steels v. State Of U.P. And Others WRIT TAX No. โ€“ 146 of 2023 (Allahabad HC) Neutral Citation No. – 2024:AHC:11990

 

The copy of the order is as under:

 

 

Menu