Hindusthan Biri Leaves & Anr Vs Assistant Commissioner of State Tax (Calcutta High Court)
In a significant ruling, the Calcutta High Court has set aside an order imposing a 200% penalty on a taxpayer for the sole reason that their e-way bill had expired. The judgment, delivered in the case of Hindusthan Biri Leaves & Anr. Vs. Assistant Commissioner of State Tax, reaffirmed the principle that a penalty under the Goods and Services Tax (GST) Act cannot be imposed mechanically without proving an intention to evade tax.
The case originated from a writ petition filed by Hindusthan Biri Leaves, a partnership firm engaged in the trading of kendu leaves. The firm had purchased 329 bags of leaves from a supplier in Chhattisgarh. The goods were being transported to Krishnanagar, West Bengal, under a valid e-way bill that was effective until the midnight of July 27, 2022. However, the vehicle was intercepted by the tax authorities on July 29, 2022, at approximately 1:05 a.m., after the e-way bill’s validity had lapsed. The authorities proceeded to issue a show-cause notice and sought to confiscate the goods. To secure the release of the perishable goods, the firm paid the penalty under protest, reserving the right to appeal.
