Case Law Details
Mid Town Associates Vs Additional Commissioner Grade-2 (Appeal) (Allahabad High Court)
In case of Mid Town Associates Versus Additional Commissioner Grade-2 (Appeal) (WRIT TAX No. – 433 OF 2020), Allahabad High Court, held that, Just because of Non production of E-way bill for verification, does not automates penalty proceeding, if the same is generated and and downloaded before commencement of movement. In the absence of mens rea, no penalty proceedings can be exists.
Fact of the case:- The petitioner is a registered dealer, who deals in manufacturing, trading and exporting of handicraft iron, glass, wax, marble, tiles, wooden handicraft etc. the goods in question were being transferred by the petitioner from Chandigarh to USA through Inland Container Depot (ICD), Moradabad vide Invoice No. MID/126. A truck bearing No. HR 38 P 8575 was assigned for the transportation of the said goods from Chandigarh to Moradabad. However Truck were intercepted and detained the same on the ground that the goods loaded on the truck were being transported without E-Way bill.
Subsequently, an order of detention under Section 20 of the Integrated Goods and Services Tax Act (hereinafter referred to as ‘the IGST Act’) read with Section 129 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “the CGST Act”) was passed on the same day, that is, on May 21, 2019 by the respondent No. 2 on the ground of presumption that the goods were being transported with the intention to evade tax due to the non production of E-Way Bill. And later SCN for penalty was issued and same is also confirmed.
Court Finding and conclusion:- It is clear from the perusal of the record that the show cause notice and the penalty order both were issued on the same day, which indicates that no opportunity of hearing was given to the petitioner to submit his reply which is a gross violation of the principles of natural justice.
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