Maa Vindhyavasini Tobacco Pvt Ltd Vs State of U.P. And 2 Others (Allahabad High Court)
The Allahabad High Court, in the matter of Maa Vindhyavasini Tobacco Pvt Ltd Vs State of U.P. And 2 Others, has ruled that the mere non-completion of Part-B of an e-way bill, when all other documents are present, is a technical breach and does not automatically imply an intention to evade tax. Consequently, the court quashed the penalty orders issued under Section 129 of the Goods and Services Tax (GST) Act, 2017.
The Issue
Maa Vindhyavasini Tobacco Pvt Ltd, a private limited company registered under the GST Act, challenged two penalty orders passed by the tax authorities concerning the interception of a goods vehicle. The company was transporting Pan Masala from Kanpur to Surat. The goods were seized on the sole ground that Part-B of the e-way bill was not generated, even though the vehicle was accompanied by the tax invoice, L.R. (Lorry Receipt), and the partially completed e-way bill.
The petitioner argued that the omission was a minor technical error and did not demonstrate any intent to evade tax, a crucial element for imposing a penalty under Section 129 of the GST Act. The tax authorities had passed an order for the release of goods, which was upheld on appeal, leading the petitioner to file a writ petition. The authorities defended the penalty orders, asserting the mandatory nature of the e-way bill requirement.
