Uttam Electric Store Vs State of U.P. And 2 Others (Allahabad High Court)
Summary: In the case of Uttam Electric Store vs. State of U.P., the Allahabad High Court ruled against imposing a penalty for a human error in an E-Way bill. The petitioner, engaged in supplying electrical goods, faced penalties for a discrepancy where the E-Way bill erroneously listed the delivery location as Chandpur instead of the actual consignee, M/s Udit Engineers in Aligarh. The petitioner argued that this error was minor and unintentional, with no discrepancies in the quality or quantity of the goods. The Court found that the authorities had not established any intent to evade tax (mens rea), which is essential for levying penalties under Section 129(3) of the GST Act. The Court’s decision was influenced by previous judgments where technical errors without fraudulent intent were not penalized. Consequently, the impugned orders imposing the penalty were quashed, and the amount deposited during the proceedings was ordered to be refunded to the petitioner. This case underscores the Court’s stance on differentiating between human errors and deliberate tax evasion.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
Heard Shri Suyash Agarwal, learned counsel for the petitioner and learned ACSC for the State – respondents.
