Global Panel Industries India Pvt. Ltd. Vs State of U.P. and Others (Allahabad High Court)
Introduction: In a significant judgment, the Allahabad High Court, in the case of Global Panel Industries Pvt. Ltd. vs. State of U.P., addressed the imposition of penalties under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 (UPGST Act). The court ruled that penalties should not be imposed when an E-way bill expires, considering the absence of any intention to evade tax. This decision, dated February 5, 2024, offers insights into the legal interpretation of technical violations and intent in tax matters.
Allahabad High Court allowed the writ petition and held that penalty should not be imposed under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 (“the UPGST Act”) on account of technical violation i.e. one of the e-way bill expired, when there is no intention to evade payment of tax.
Facts:
Global Panel Industries (P.) Ltd. (“the Petitioner”) has filed a writ petition against Penalty Order dated January 16, 2023 and Appellate Order dated January 30, 2023 (“the Impugned Orders”) passed by the Revenue Department (“the Respondent”) wherein penalty has been imposed under Section 129(3) of the UPGST Act on the ground that one of the e-way bill has expired.
Issue:
Whether Penalty should be imposed when one of the E-way bill expired?
Held:
The Hon’ble Allahabad High Court in Writ Tax No. 141 of 2023 held as under:
