Panasonic India Pvt Ltd Vs Addditional Commissioner And 2 Others (Allahabad High Court)
The writ petition before the Allahabad High Court challenged an appellate order upholding detention and penalty under GST for goods transported with an expired e-way bill. The petitioner contended that the goods were accompanied by all requisite documents, including a tax invoice, goods receipt, and an e-way bill generated on 15.06.2018, which expired on 16.06.2018. The delay in transit was explained as being caused by the driver leaving the vehicle at the consignor’s premises to celebrate Eid without informing the consignor. When the goods resumed transit, they were intercepted on 18.06.2018. Before any detention or seizure order was passed, a fresh e-way bill was generated and produced.
The authorities nevertheless detained the goods, drawing an inference of tax evasion without recording any concrete finding or material evidence. The Court found that such an inference was unsupported by the record. It noted that the new e-way bill was produced prior to seizure and that the authorities failed to establish any intent to evade tax. Relying on binding precedent, the Court held that mere expiry of an e-way bill, in the absence of intent to evade tax and when corrective action was taken promptly, could not justify detention and penalty.
