Industrial Pumps & Motors Agencies & Anr Vs State of West Bengal (Calcutta High Court)
200% GST Penalty Quashed Because No Intent to Evade Tax Was Found in Expired E-Way Bill Case; GST Penalty Reduced to Token Fine Because Goods Were Near Destination and No Tax Irregularity Was Alleged; Calcutta High Court Grants Relief Because Expired E-Way Bill Was the Sole Alleged Violation; GST E-Way Bill Penalty Set Aside Because Authorities Failed to Show Any Tax Evasion Intent.
The Calcutta High Court considered a writ petition challenging an order of the GST Appellate Authority dated November 11, 2024, which had affirmed an earlier order dated May 12, 2022, passed under Section 129(3) of the West Bengal Goods and Services Tax Act, 2017 (WBGST Act). The authorities had imposed a penalty of Rs. 1,58,034 on the petitioners for transporting goods with an expired e-way bill.
The petitioners, engaged in the retail business of transmission shafts, pumps, electric motors, and related goods, had supplied pumps for liquids, liquid elevators, and parts of centrifugal pumps to the Durgapur Steel Plant of Steel Authority of India Limited (SAIL) on May 7, 2022. The goods were transported under a valid e-way bill generated on May 7, 2022, at 1:09 PM. The e-way bill was valid for a distance of 180 kilometres and remained valid until 11:59 PM on May 8, 2022.
