Case Law Details
Globe Panel Industries India Pvt Ltd Vs State of U.P. And Others (Allahabad High Court)
Introduction: In a landmark judgment, the Allahabad High Court provided significant relief to Globe Panel Industries India Pvt Ltd, setting a precedent on the implications of an expired GST E-Way Bill during transportation of goods. This decision, stemming from the case against the State of U.P. and Others, delves into the intricacies of tax and penalty imposition under the Uttar Pradesh Goods and Services Tax Act, 2017, specifically Section 129(3).
Detailed Analysis
The petitioner found itself ensnared in legal proceedings due to the expiration of one of its E-Way Bills, despite the vehicle carrying valid e-Invoices and matching goods descriptions. Highlighting a lack of intent to evade tax, the petitioner demonstrated due diligence by providing evidence of vehicle breakdown and subsequent repairs, supported by a mechanic’s letter and ‘fast tag’ movement tracking. However, these critical pieces of evidence were overlooked by the authorities, leading to the imposition of a penalty.
The contention revolved around whether the mere expiration of an E-Way Bill, in the absence of any intention to evade tax, warrants the imposition of a penalty. Citing precedents in M/s Pepsico India Holdings Limited Lucknow v. Commissioner of Trade Tax and Jain Shudh Vanaspati Limited Ghaziabad and Others v. State of U.P. and Others, the petitioner argued against the penalty for technical violations not indicative of tax evasion.
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