Rimjhim Ispat Limited Vs State of Up And 2 Others (Allahabad High Court)
The Allahabad High Court, in the case of Rimjhim Ispat Limited Vs. State of UP and 2 Others, has set aside a penalty imposed under Section 129(3) of the Integrated Goods and Services Act, 2017, read with Section 129(3) of the CGST Act, 2017. The petitioner contested an order dated September 5, 2024, arguing it failed to consider Circular No. 64/38/2018-GST issued by the Ministry of Finance.
The core of the dispute involved a typographical error in an e-way bill, where the taxable amount was incorrectly stated as Rs. 2,73,00,000 instead of the actual value of Rs. 27,30,000. All other accompanying documents corroborated the lower, correct value.
The Court observed that there was no apparent intent to evade tax, concluding the error was purely typographical. While acknowledging the usual practice of directing petitioners to alternative remedies, the Court opted to exercise its jurisdiction, deeming a statutory appeal a “significant waste of time and energy” given the clear nature of the mistake.
Consequently, the High Court ruled that the penalty imposed was unjustified in the absence of tax evasion intent. The impugned order was quashed, and authorities were directed to release the detained goods and vehicle to Rimjhim Ispat Limited within two weeks of receiving a certified copy of the order. This ruling underscores the judiciary’s willingness to intervene in clear cases of clerical error to prevent undue burden on taxpayers.
