Spirare Energy Pvt Ltd Vs State of U.P. And 3 Others (Allahabad High Court)
Summary: In the case of Spirare Energy Pvt Ltd vs State of U.P., the Allahabad High Court quashed an order imposing tax and penalty due to a technical error in the E-Way Bill. The petitioner challenged the orders passed by the Additional Commissioner of State Goods and Services Tax (SGST), Agra, citing a minor discrepancy in the consignee’s address on the E-Way Bill, while the invoice and goods details were accurate. The court observed that there was no evidence of mens rea (intent to evade tax) on the part of the petitioner, emphasizing that mere technical errors without fraudulent intent do not justify penalties. The court referred to similar judgments, including M/s Modern Traders v. State of U.P. and M/s Galaxy Enterprises v. State of U.P., which underscored the need for mens rea in tax evasion cases. Consequently, the court set aside the orders dated February 22, 2020, and September 8, 2019, and directed a refund of the amount deposited by the petitioner within one month, along with other consequential reliefs.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Sri Vedant Agarwal, learned counsel holding brie of Sri Rahul Agarwal and the learned Additional Chief Standing Counsel appearing on behalf of the State.
