Exch. Therm Engineering Company Vs State of U.P (Allahabad High Court)
Allahabad: The Allahabad High Court has set aside a penalty levied under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017, against Exch. Therm Engineering Company. The penalty was imposed solely on the ground that Part ‘B’ of the e-Way Bill was not filled, despite the presence of truck details on the invoice, no discrepancy in goods, and no evidence of intent to evade tax.
The case came before the High Court in a writ petition challenging the penalty order dated May 1, 2018, and the subsequent appellate order of March 15, 2019, which had upheld the penalty.
The central issue revolved around the incomplete e-Way Bill. While the tax authorities levied the penalty for the omission in filling Part ‘B’, the petitioner contended that this was a technical lapse without any underlying intention to evade tax.
Representing the petitioner, Ms. Pooja Talwar argued that the invoice accompanying the goods contained the details of the truck transporting the consignment. Furthermore, she submitted that there was no variance between the goods found and the details mentioned in the invoice. Crucially, she highlighted that the Department had failed to demonstrate any intention on the part of the petitioner to evade tax, which she contended is a necessary prerequisite for imposing a penalty under Section 129(3) of the Act.
