Perfect Enterprise Vs State of West Bengal (Calcutta High Court)
In a significant ruling, the Hon’ble Calcutta High Court, in the case of Perfect Enterprise v. State of West Bengal [W.P.A. No. 532 of 2023 dated June 15, 2023], overturned a penalty order issued by the Adjudicating Authority and subsequently upheld by the Appellate Authority. The court held that no penalty should be imposed on a bonafide assessee if the e-way bill expires during the transportation of goods due to a national holiday.
Facts:
M/s Perfect Enterprise (“the Petitioner”) purchased the goods from the supplier on April 20, 2022 and transported those goods from Kandla Port, Gujarat to Siliguri. The e-way bill was valid up to May 02, 2022.
The vehicle reached Siliguri on May 02, 2022 however, the stockyard was closed thus, driver parked the vehicle nearby and May 3, 2022 was National Holiday on account of Ed-Ul-Fitr.
On May 04,2022 at 3:20 AM the Revenue Department intercepted the vehicle and detained the goods and passed the detention order on the ground that vehicle was found in transit with an expired e-way bill and issued a Show Cause Notice dated May 7, 2022 (“the SCN”) to the Petitioner and levied a penalty of INR 2,48,195.
The Revenue Department passed a demand order dated May 12, 2022 (“the Impugned Order”) for demand of tax and penalty upon the driver of INR 4,96,390.
Aggrieved with the Impugned order the Petitioner filed an appeal before the Appellate Authority on January 31, 2023, which was rejected by the Appellate Authority.
Aggrieved by rejection of appeal the Petitioner filed writ before the Hon’ble Calcutta High Court and contended that the Petitioner was bonafide and there was no wilful misconduct committed by the Petitioner while transporting the goods.
Issue:
Whether the Petitioner is liable for penalty in case e-way bill expires during the transit?
Held:
The Hon’ble Calcutta High Court in W.P.A. No. 532 of 2023 held as under:
