Case Law Details
Saraf Trexim Limited Vs Deputy Commissioner Of State Tax And Ors (Calcutta High Court)
In a significant judgment, the Calcutta High Court provided relief to Saraf Trexim Limited in the case against the Deputy Commissioner of State Tax and Others, highlighting the critical nuances of the West Bengal Goods and Services Tax (WBGST) Act related to the transportation of goods and the validity of e-way bills. This article delves into the details of the case, where an expired e-way bill due to an unforeseen accident led to a substantial penalty, and the subsequent ruling by the Calcutta High Court that quashed the 200% penalty imposed on the appellant.
Detailed Analysis
The case revolves around Saraf Trexim Limited, which faced a hefty penalty under the WBGST Act for transporting goods with an expired e-way bill. The goods were being exported to Bangladesh, and due to an accident involving the transporting vehicle, the validity of the e-way bill expired before renewal. Upon interception by the authorities, it was discovered that the e-way bill had expired, leading to the imposition of a 200% penalty as per Section 129 of the WBGST Act.
The appellant argued that the delay in generating a new e-way bill was due to the accident and subsequent settlement between the involved parties, which was a genuine and unavoidable delay. The High Court, upon reviewing the facts and circumstances of the case, recognized the bona fides of the transaction and the unintentional delay caused by the accident. It was noted that similar cases had been adjudicated with a consideration for the intent behind the contravention of the e-way bill provisions.
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