Case Law Details
Rawal Wasia Yarn Dying Pvt. Ltd. Vs Commissioner Commercial Tax And Another (Allahabad High Court)
Introduction: The Allahabad High Court, in a recent judgment, addressed the issue of imposing penalties for non-filing of Part ‘B’ of the e-Way Bill under the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner, Rawal Wasia Yarn Dying Pvt. Ltd., challenged the penalty imposed on them and the subsequent dismissal of their appeal.
Detailed Analysis: The court examined the facts, highlighting that the invoice included details of the truck transporting the goods, and there was no discrepancy between the goods and the invoice. The Department failed to establish any intent by the petitioner to evade tax. The petitioner’s counsel cited relevant judgments to argue that non-filing of Part ‘B’ without intent to evade tax should not lead to penalties.
Referring to the judgment in M/s Citykart Retail Pvt. Ltd.’s case, the court emphasized that a technical error without an intention to evade tax should not warrant penalties. The court found similarities with the present case, where the invoice contained truck details, and the error was technical in nature. Consequently, the court quashed the orders dated May 24, 2022, and October 15, 2022, and allowed the petition. The respondents were directed to return the security to the petitioner.
Conclusion: The Allahabad High Court’s decision sets a precedent that non-filing of Part ‘B’ of the e-Way Bill, in the absence of an intention to evade tax and with technical errors, should not attract penalties. This judgment provides relief to businesses facing similar issues and reinforces the importance of considering intent in tax-related matters.
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