Gurunanak Arecanut Traders Vs Commercial Tax And Another (Allahabad High Court)
Penalty proceeding are justifiable under Sec 129, in case of Movement of Goods without E-way bill-Allahabad High Court
In recent case of Gurunanak Arecanut Traders Versus Commercial Tax And Another, Allahabad High Court concluded that, It is mandatory on the part of the seller to generate and download the e-way bill once the goods are put in transit. in case goods are not accompanied by e-way bill, a presumption may be read that there is an intention to evade tax. Subsequent downloading of e-way bill would not absolve the liability under the Act.
Read SC Judgment in this case: SC Declines Interference in ₹90.62 Lakh E-Way Bill Penalty Case
Background- The petitioner is a registered dealer under GST and He has sold Arecanut under tax invoice another registers person (customer). The said Arecanut was being transported from Delhi to Nagpur, through third party transporter without e-way bill.
During the physical verification of consignment of goods was carried out. A detention order was passed under Section 129(1) On verification, it was found that the goods which were in transit is Chikni Bhuni Supari (processed Arecanut) and is taxable @ 18% and not @5% as declared by the petitioner.
