Aa Plastics Pvt. Ltd. Vs Additional Commissioner Grade 2 And 2 Others (Allahabad High Court)
The Allahabad High Court has ruled in favor of Aa Plastics Pvt. Ltd., quashing a GST penalty imposed due to the expiration of an E-way bill during the transportation of goods. The petitioner challenged the orders issued by the Additional Commissioner, Commercial Tax/State Tax, Agra, and sought relief from the penalty levied for the expired E-way bill.
Case Background
Aa Plastics Pvt. Ltd., a company holding a GSTIN, is engaged in the manufacture and supply of LD Polythene sheets and bags. On August 5, 2021, the petitioner dispatched goods to M/s Benara Udyog Limited, Agra, accompanied by valid invoices and transported through M/s New Mallik Transport Commission Agency. However, on August 9, 2021, the goods were detained as the E-way bill had expired during transit.
The petitioner explained that the driver had taken an unplanned detour due to a personal emergency, causing the delay. Despite this explanation and the generation of an amended E-way bill on August 8-9, the goods were seized, and a penalty was imposed by the tax authorities on August 17, 2021. The petitioner’s appeal to the Additional Commissioner was subsequently rejected without considering the amended E-way bill and the circumstances presented.
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