Vishnu Singh Vs State of Up And 2 Others (Allahabad High Court)
Clerical error in e-way bill does not empower for levy of penalty/seizure of Goods, unless evasion of Tax is proven: Allahabad High Court
Summary: In the case of Vishnu Singh vs. State of UP, the Allahabad High Court ruled that a clerical error in an e-way bill does not justify the imposition of penalties or the seizure of goods unless tax evasion is established. The case involved a proprietorship firm engaged in civil work contracts that purchased durapave bitumen from Indian Oil Corporation. Due to human error, an internal document number was mistakenly entered instead of the tax invoice number while generating the e-way bill. Despite the validity of the accompanying tax invoice and other transport documents, authorities intercepted and seized the goods, alleging a mismatch. A notice was issued under Section 129(3) of the GST Act, imposing tax and penalties, which were upheld in the appeal. The High Court, however, ruled that since the e-way bill had been properly generated and not canceled, the transaction’s genuineness could not be questioned solely based on a clerical mistake. The court emphasized that the purpose of an e-way bill is to track the movement of goods, not to penalize unintentional errors. It observed that no discrepancies were found in the nature or quantity of goods and that no intent to evade tax was established. Citing similar rulings, the court held that such technical mistakes cannot justify seizure or penalties. Consequently, the impugned orders were quashed, reinforcing that procedural errors in e-way bills should not automatically lead to punitive actions unless tax evasion is proven.
