Fiserv Merchant Solutions Private Limited Vs State of UP and 2 others (Allahabad High Court)
Allahabad High Court has set aside a penalty imposed on Fiserv Merchant Solutions Private Limited under Section 129(3) of the Uttar Pradesh Goods and Services Tax (UP GST) Act, 2017. The court ruled that the mere non-filling of Part-B of an e-way bill, without any finding of an intent to evade tax, does not warrant the imposition of such a penalty.
The case arose when goods being transported by the petitioner were intercepted at U.P. Gate, Ghaziabad. While an e-way bill was being carried, it was discovered that Part-B of the document was incomplete. Consequently, a notice was issued to Fiserv Merchant Solutions Private Limited. Although the petitioner appeared before the authorities, no formal response was filed. The State Tax Officer, Ghaziabad, concluded that the movement of goods without a fully completed Part-B constituted a violation of Rule 138 of the GST Rules, 2017, and proceeded to impose a penalty.
Learned counsel for the petitioner argued that the omission to fill Part-B was a “technical breach” and that there was no intention to evade tax. Crucially, the counsel highlighted that the penalty order did not record any finding regarding an intent to evade tax. Reliance was placed on a series of consistent rulings by the Allahabad High Court, which have established that a technical lapse in e-way bill documentation, in the absence of a proven intent to evade tax, should not attract penalties under Section 129 of the Act. Specifically, the judgment in M/s Precision Tools India vs. State of U.P. and others (Writ-Tax No. 415 of 2023), decided on January 29, 2024, was cited as a key precedent.
