No Penalty Under Section 129(3) Of CGST Act Could Be Imposed Without Providing A Hearing Opportunity U/S 129(4) Of The Act
1 year, 8 months ago

No Penalty Under Section 129(3) Of CGST Act Could Be Imposed Without Providing A Hearing Opportunity U/S 129(4) Of The Act

Live Law  

While observing that a petitioner’s response to the show cause is required to be considered after due opportunity of hearing, in accordance with the statutory provisions, the Patna High Court has overturned the penalty imposed on a petitioner for moving goods without a valid e-way bill. The Court ruled that no penalty under Section 129 of the Central Goods and Services Tax Act could be imposed without providing a hearing as prescribed under Section 129 of the Act. The case revolved around a vehicle intercepted on the Gaya-Dobhi Road for movement without a valid e-way bill, leading to the imposition of a penalty under Section 129 of the Central Goods and Services Tax Act. Following the detection of goods in transit without a valid e-way bill, the proper officer under the CGST Act levied a penalty on the petitioner, as stated in the order dated 28th March 2022. While noting that the order imposing the penalty failed to indicate the petitioner's appearance or any hearing held before its issuance, the court observed, “This Court would find that the notice issued under Section 129 was nothing more than an empty formality as no time/opportunity has been allowed pursuant to the notice, and immediately, on the same date, penalty has been recorded under Section 129.” “The determination of penalty under Section 129 is, therefore, in contravention of the statutory requirement under Section 129 of the Act.

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History of this topic

[GST] Penalty Can't Be Imposed On Goods In Transit With Tax Invoice & E-Way Bill, Citing Subsequent Suspension Of Registration: Allahabad HC
4 months, 1 week ago

[GST] Penalty Can't Be Imposed On Goods In Transit With Tax Invoice & E-Way Bill, Citing Subsequent Suspension Of Registration: Allahabad HC

Live Law  

The Allahabad High Court has set aside the demand and penalty order passed under Section 129 of the Central Goods and Services Tax Act 2017 against a trader whose GST registration came to be suspended, after it found that the goods in transit were accompanied with proper tax invoice and e-way bill. Significant to note that the tax invoice and …

No Difficulties In Generating E-Way Bill After April 2018: Allahabad High Court Upholds Penalty U/S 129 GST For Late Production Of E-Way Bill
1 year ago

No Difficulties In Generating E-Way Bill After April 2018: Allahabad High Court Upholds Penalty U/S 129 GST For Late Production Of E-Way Bill

Live Law  

The Allahabad High Court has held that when the Goods and Services Tax Regime was launched in 2017, there were difficulties in downloading e-way bills. While upholding the penalty order under Section 129 of the Goods and Services Tax Act, 2017 for production of e-way bill after interception, Justice Shekhar B. Saraf held “Mere furnishing of the documents subsequent to …

GST | Truck Moving Slowly Due To Fault In Engine, Not Extending E-Way Bill Technical Breach: Allahabad HC Quashes Penalty U/S 129
1 year ago

GST | Truck Moving Slowly Due To Fault In Engine, Not Extending E-Way Bill Technical Breach: Allahabad HC Quashes Penalty U/S 129

Live Law  

The Allahabad High Court has held that when the GPS tracking system showed slow movement of the truck due to mechanical issues in the engine, penalty under Section 129 of the Goods and Service Tax Act, 2017 could not have been imposed for not extending time-period in e-way bill. and Others, the Court held that intention to evade tax is …

GST | Production Of Invoice, E-Way Bill After Detention Does Not Absolve Assessee Of Penalty: Allahabad High Court
1 year, 1 month ago

GST | Production Of Invoice, E-Way Bill After Detention Does Not Absolve Assessee Of Penalty: Allahabad High Court

Live Law  

The Allahabad High Court has held that absence of tax invoices and/or e-way bill at the time of interception and their subsequent production does not absolve the assesee from the liability of penalty under the Goods and Service Tax Act. The Court held in absence of tax invoices and/or e-way bill with the goods in transit, the burden to prove …

UPGST | Expired E-Way Bill, But No Intention To Evade Tax: Allahabad High Court Quashes Penalty Order
1 year, 1 month ago

UPGST | Expired E-Way Bill, But No Intention To Evade Tax: Allahabad High Court Quashes Penalty Order

Live Law  

Recently, the Allahabad High Court has quashed the penalty which was imposed due to production of expired e-way bill at the time of detention. Since, there was no dispute regarding consignor and consignee and the description of the goods, the Court held that penalty could not be imposed for a technical error in absence of any intention to evade tax. …

No Fraudulent Intention Established: Gujarat High Court Quashes Penalty
2 years, 3 months ago

No Fraudulent Intention Established: Gujarat High Court Quashes Penalty

Live Law  

The Gujarat High Court has held that the department could not establish any element of tax evasion with fraudulent intent or negligence.The division bench of Justice Sonia Gokani and Justice Mauna M. Bhatt has observed that the delay was of almost 4 1⁄2 hours before the e-Way bill could expire. The Gujarat High Court has held that the department could …

Penalty Can't Be Imposed Without Giving The Opportunity Of Hearing To The Taxpayer: Andhra Pradesh High Court
2 years, 9 months ago

Penalty Can't Be Imposed Without Giving The Opportunity Of Hearing To The Taxpayer: Andhra Pradesh High Court

Live Law  

The Andhra Pradesh High Court has ruled that the GST penalty cannot be imposed without giving the taxpayer an opportunity of hearing. The department/respondent issued a letter on Form GSTR-3A under Section 46 of the CGST Act on the ground that the petitioner failed to submit its returns on GSTR-3B for the months of January, 2020 to June, 2020 and, …

Wrong Declaration In E-Way Bill: Madras High Court Quashes Penalty Under GST As There Was No Intention Of Tax Evasion
2 years, 11 months ago

Wrong Declaration In E-Way Bill: Madras High Court Quashes Penalty Under GST As There Was No Intention Of Tax Evasion

Live Law  

The Madras High Court bench of Justice C. Saravanan has quashed the penalty under GST for a wrong declaration in an e-way bill as there was no intention of tax evasion. However, in the E-way bill and the delivery Challan, the petitioner had declared the consignee as 130, Ring Road, Chintamani, Madurai, though the consignment was meant to be discharged …

GST Evasion Can't Be Presumed Merely Because Goods Were Delivered After Expiry Of E-Way Bill Due To External Factors Like Traffic Block: Supreme Court
3 years, 2 months ago

GST Evasion Can't Be Presumed Merely Because Goods Were Delivered After Expiry Of E-Way Bill Due To External Factors Like Traffic Block: Supreme Court

Live Law  

The Supreme Court has observed that non-extension of e-way bill would not automatically amount to evasion of tax, especially when the non-delivery of goods within the validity period of the e-way bill was due to external factors, like, traffic blockage. A Bench comprising Justices Dinesh Maheshwari and Hrishikesh Roy dismissed an appeal filed by the Revenue Department assailing the order …

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