Case Law Details
Jhansi Enterprises Vs State of U.P. And Others (Allahabad High Court)
Introduction: The Allahabad High Court’s recent judgment in Jhansi Enterprises Vs State of U.P. And Others delves into the critical issue of GST compliance, particularly focusing on the mandatory requirement of generating and carrying an e-way bill for the transportation of goods. This case examines the consequences faced by the petitioner for failing to adhere to this requirement and challenges the penalty imposed under Section 129 of the Goods and Services Tax Act.
Detailed Analysis: Jhansi Enterprises, a registered dealer under the GST Act, found itself in a legal quagmire when its consignment was intercepted for not having an accompanying e-way bill. Despite producing the bill post-interception and arguing that the delay was due to operational hiccups, the petitioner was penalized, leading to a legal battle that culminated in the doors of the Allahabad High Court.
The petitioner argued that technical difficulties and inadvertent operational lapses led to the delay in e-way bill generation, asserting there was no intent to evade tax. They cited previous rulings suggesting that in the absence of tax evasion intent, penalties under Section 129 might not be justifiable.
However, the Court observed that after April 2018, significant improvements in the e-way bill generation system had mitigated earlier technical difficulties, making compliance more straightforward. The Court emphasized the importance of generating the e-way bill before transportation begins, noting that failure to do so cannot be excused by post-facto justifications. The bench pointed out that even if the documents were furnished subsequently, it would not absolve the petitioner from the penalty for initial non-compliance.
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