No penalty for not filing Part B of the E-way bill because of technical issues.

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No penalty for not filing Part B of the E-way bill because of technical issues.

 

The Hon’ble Allahabad High Court in the case of Precision Tools India v. State of Uttar Pradesh [Writ Tax No. 415 of 2023 dated January 29, 2024] held that non-filling of Part ‘B’ of the E-Way Bill on technical difficulties and without any intention to evade tax would not lead to the imposition of penalty.

Precision Tools India (“the Petitioner”) completed part A of the e-way bill, but owing to technical issues, part B of the e-way bill could not be prepared. The goods in question were personal-made goods with exclusive specifications that were supplied to the Railways and such goods could only be supplied to the particular consignee. The Proper Officer without finding any defect in the consignment note nor any discrepancy in the documents, passed an order of penalty.

The Hon’ble Allahabad High Court in Writ Tax No. 415 of 2023 held as follows:

  • It was observed that the Respondent was unable to show the Petitioner’s purpose to Evade Tax.
  • relied upon judgment of this Court in M/S Roli Enterprises Vs. State of U.P. and Others (Writ Tax No.937 of 2022 decided on January 16, 2024) wherein this Court had considered two judgements of the Allahabad High Court in VSL Alloys (India) Pvt. Ltd v. State of U.P. and another reported in 2018 NTN [Vol.67]-1 and M/s Citykart Retail Private Limited through Authorized Representative vs. Commissioner Commercial Tax and Another reported in 2023 U.P.T.C. [Vol.113]-173 and held that non filling up of Part ‘B’ of the eWay Bill by itself without any intention to evade tax would not lead to imposition of penalty under Section 129(3) of the UPGST Act.
  • Held that, the defect was technical only and without any intention to evade tax. Accordingly, the penalty imposed under Section 129(3) of the UPGST Act is unsustainable. The Impugned Orders were quashed and set aside. The writ petition was allowed.

The copy of the order is as under:

Copy of Precision-Tools-India-Vs-State

 

From,

Krishnakant Jakhotia

Mobile No :- 9422507911

Email Id :- taxtalknew@gmail.com

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