Case Law Details
Citykart Retail Pvt. Ltd. Vs Commissioner Commercial Tax U.P. Gomti Nagar Lko. And Anr. (Allahabad High Court)
In a recent judgment, the Allahabad High Court addressed a case involving the non-filling of Part ‘B’ of the e-Way Bill by Citykart Retail Pvt. Ltd. The petitioner challenged the demand and penalty imposed by the tax authorities, asserting that the incomplete e-Way Bill was due to a technical glitch, and there was no intention to evade tax. This article provides a comprehensive analysis of the case, covering the background, arguments, court’s reasoning, and the final decision.
Background: Citykart Retail Pvt. Ltd., engaged in the trading of ready-made garments, faced penalties following an inspection on April 17, 2018. The tax authorities discovered an incomplete e-Way Bill during the inspection of goods being transported from Gurgaon, Haryana, to Rae Bareli, U.P. The incomplete Part ‘B’ of the e-Way Bill led to the detention of the vehicle for verification, subsequent seizure of goods, and the issuance of a show cause notice.
The petitioner argued that the incomplete e-Way Bill was a result of a technical glitch, specifically regarding the vehicle number not being reflected in Part ‘B.’ The petitioner referred to a clarificatory circular issued by the tax department, acknowledging technical issues with number plates bearing Delhi numbers. The petitioner contended that there was no intention to evade tax, and the error was unintentional.
Arguments and Counterarguments: The counsel for the petitioner contended that the circular issued by the Ministry of Finance, along with the clarificatory circular, supported their claim that the error was due to a technical glitch. Additionally, reliance was placed on a court judgment from a similar case where the court set aside a seizure order.
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