Appollo Plywood Industries & Ors Vs Assistant Commissioner of Revenue (Calcutta High Court)
Penalty u/s 129 was imposed by BOI against expiry of ewaybill. Writ petition was filed before the Hon’ble single bench of Calcutta high court but was dismissed. Later its was challenged before the Hon’ble Division Bench of Calcutta High Court. The court gave the judgement in favour of the petitioner directing to refund the penalty amount by deducting the minimum penalty of 25000 only.
Coram: Hon’ble Chief Justice T.S. Sivagnanam and Hon’ble Justice Chaitali Chatterjee (Das)
Background:
- The appellants challenged the penalty of ₹7,31,661/- imposed under Section 129 of the CGST/WBGST Act, 2017 for transporting goods without a valid e-way bill.
- The appellate authority had confirmed the penalty.
- The e-way bill, generated on 28.03.2025, expired at midnight of 03.04.2025. The vehicle was intercepted at 3:10 PM on 04.04.2025, about 90 km from its destination in West Bengal.
- The only issue was expiry of the e-way bill, with no discrepancy in invoice, quantity, or other documents.
Key Legal Provisions Discussed:
- Section 129(1): Permits detention and penalty if goods are transported in contravention of the Act.
- Rule 138(10): Allows e-way bill validity extension under exceptional circumstances within 8 hours of expiry.
- No allegation of tax evasion by the authorities.
Appellants’ Justification:
- Delay due to:
- Blockage of highway owing to a political rally and visit of the Hon’ble Chief Minister for cyclone relief.
- Inclement weather, as supported by weather reports.
- The driver was unaware of the e-way bill expiry extension provision.
- The delay was unintentional and occurred less than 24 hours after expiry.
Court’s Observations:
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