UPGST | Expired E-Way Bill, But No Intention To Evade Tax: Allahabad High Court Quashes Penalty Order
10 months, 2 weeks ago

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

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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. Relying on the decision of the Allahabad High Court 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. Since the authorities had failed to make a case of intention to evade tax, the Court held that penalty under Section 129 cannot be imposed based on technical errors.

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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
1 month, 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
9 months, 2 weeks 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

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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
9 months, 2 weeks ago

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

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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
10 months 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 …

GST | Only Typographical/ Clerical Error In Documents, Initial Burden On Department To Prove Intention To Evade Tax: Allahabad High Court
10 months ago

GST | Only Typographical/ Clerical Error In Documents, Initial Burden On Department To Prove Intention To Evade Tax: Allahabad High Court

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The Allahabad High Court has held that in case of no discrepancies or clerical errors in the documentation, the initial burden to prove that there is intention to evade tax lies on the department. The Court held that the department did not attempt to discharge its burden prove intention to evade tax on part of the petitioner. Relying on its …

Indirect Tax Cases Weekly Round-Up: 04 To 10 February 2024
10 months, 1 week ago

Indirect Tax Cases Weekly Round-Up: 04 To 10 February 2024

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Supreme Court Customs Act | Claimant Entitled To Interest On Delayed Return Of The 'Duty Drawback' : Supreme Court UNION OF INDIA AND ORS. Madras High Court Case Title: M/s.Supreme Paradise Versus Assistant Commissioner Citation: 2024 LiveLaw 61 The Madras High Court has held that a discount linked to the subsidy alone can form part of the “transaction value.” Case …

Allahabad High Court Monthly Tax Digest: January 2024
10 months, 2 weeks ago

Allahabad High Court Monthly Tax Digest: January 2024

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UP GST | No Interference Under Article 226 Unless Inherent Lack Of Jurisdiction Or Absence Of Relevant Material Established: Allahabad High Court Case Citation: 2024 LiveLaw 4 The Allahabad High Court has held that the writ court should not interfere in notice issued under Section 73 of the UP Goods and Service Tax Act, 2017 unless there is inherent lack …

Indirect Tax Cases Monthly Round Up: January 2024
10 months, 2 weeks ago

Indirect Tax Cases Monthly Round Up: January 2024

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Supreme Court Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme Court Case Title: M/s. Case Title: Murli Packers Through Its Proprietor Rakesh Kumar Jain vs. State Of U P Through Secretary, Institutional Finance Case Citation: 2024 LiveLaw 52 On Wednesday, the Allahabad High Court …

Department Required To Serve Notice Upon Legal Representative Of Deceased Before Proceeding Under GST Act: Allahabad High Court
1 year, 1 month ago

Department Required To Serve Notice Upon Legal Representative Of Deceased Before Proceeding Under GST Act: Allahabad High Court

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The Allahabad High Court has held that the Goods and Service Tax Department is required to serve notice upon the legal representative of a deceased before proceeding against the deceased under the Central Goods and Service Tax Act, 2017. A show cause notice was issued in the name of petitioner’s husband imposing liability of Rs.8,97,716/- under the proviso to Section …

GST Act | Proceedings Ought Not To Be Initiated If Rectified Tax Invoices, E-Way Bills Produced Before Passing Detention Order: Allahabad HC
1 year, 1 month ago

GST Act | Proceedings Ought Not To Be Initiated If Rectified Tax Invoices, E-Way Bills Produced Before Passing Detention Order: Allahabad HC

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The Allahabad High Court has held that once rectified/ correct tax invoices and e-way bills are produced before the authorities before passing of the detention/ seizure order, the proceedings under the Goods and Service Tax Act, 2017 ought not to be initiated. Vs. Union of India and others and M/s Bhumika Enterprises Vs. State of UP and others, the bench …

No Provision For Taxing Stock Transfer From One Unit To Another Within State: Allahabad High Court Quashes Penalty Order
1 year, 2 months ago

No Provision For Taxing Stock Transfer From One Unit To Another Within State: Allahabad High Court Quashes Penalty Order

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The Allahabad High Court has held that there is no provision for taxing goods being transported from one unit of the assesee to another within the State of Uttar Pradesh. Petitioner's goods were being transported from one unit to another in the State of Uttar Pradesh when they were intercepted and detained as Part-B of the e-way bill was complete. …

UPGST | For Claiming ITC, Burden On Assesee To Prove Genuineness Of Transaction Beyond Doubt: Allahabad High Court
1 year, 2 months ago

UPGST | For Claiming ITC, Burden On Assesee To Prove Genuineness Of Transaction Beyond Doubt: Allahabad High Court

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The Allahabad High Court has held that input tax credit cannot be claimed by an assesee if he has failed to discharge the burden to prove the actual transaction and physical movement of goods beyond doubt. Referring to Section 16 and 74 of the UP Goods and Service Tax Act, 2017, Justice Piyush Agrawal held “it is evident that in …

GST Act | If Invoice Or Any Other Specified Document Is Accompanying Goods, Then Consigner Or Consignee Are Deemed To Be Owner: Allahabad HC
1 year, 2 months ago

GST Act | If Invoice Or Any Other Specified Document Is Accompanying Goods, Then Consigner Or Consignee Are Deemed To Be Owner: Allahabad HC

Live Law  

The Allahabad High Court held that if goods are accompanied by invoices or any other document as specified, either the consignee or the consigner shall be deemed owner of the goods. Counsel for Petitioner contended that penalty, if any, could not be imposed under Section 129 of the Act since the owner of the goods had come forward before the …

Tribunal Tried To Blow Hot And Cold At The Same Time: Allahabad High Court Upholds Levy Of Entry Tax
1 year, 3 months ago

Tribunal Tried To Blow Hot And Cold At The Same Time: Allahabad High Court Upholds Levy Of Entry Tax

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The Allahabad High Court recently set aside an order of the Commercial Tax Tribunal, Ghaziabad on the ground that it had made contradictory observations in its order regarding purchases made by the assesee. It may further be observed that the Tribunal, while recording the finding under the Entry Tax Act that the purchases have not been made from unregistered dealer …

Reusing E-way Bills Demonstrates Intention Of Tax Evasion: Punjab And Haryana High Court Upholds Penalty Against Transporter
1 year, 4 months ago

Reusing E-way Bills Demonstrates Intention Of Tax Evasion: Punjab And Haryana High Court Upholds Penalty Against Transporter

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The Punjab and Haryana High Court has upheld the penalty against the transporter and ruled that reusing e-way bills demonstrates the intention of tax evasion.The bench of Justice G.S. Sandhawalia and Justice Harpreet Kaur Jeewan has observed that the ‘intention to evade payment of tax’ is an essential ingredient for initiating proceedings against a person under Section 130. The Punjab …

Goods In Transit Can’t Be Treated As Non-Traceable In Presence Of Tax Invoice, E-Way Bill And Bilty: Allahabad High Court
1 year, 4 months ago

Goods In Transit Can’t Be Treated As Non-Traceable In Presence Of Tax Invoice, E-Way Bill And Bilty: Allahabad High Court

Live Law  

The Allahabad High Court has quashed the penalty order passed in Form MOU-09 under Section 129 of the Goods and Services Tax Act, 2017 on the grounds that the goods in transit were duly accompanied by the tax invoice, e-way bill, and bilty.The bench of Chief Justice Pritinker Diwaker and Justice Ashutosh Srivastava has relied on the decision of the …

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, 5 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

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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 …

No Case Of Tax Evasion Made Out As Goods Meant For Export Were Taken Back To The Factory For Repairs: Calcutta High Court
1 year, 5 months ago

No Case Of Tax Evasion Made Out As Goods Meant For Export Were Taken Back To The Factory For Repairs: Calcutta High Court

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The Calcutta High Court has held that no case of tax evasion was made out as goods meant for export were taken back to the factory for repairs.The bench of Chief Justice T. S. Sivagnanam and Justice Uday Kumar has observed that as per the e-Way Bill, no tax was payable since the goods, which were owned by the appellants, …

Dept. Vacillating Whether Goods Were In Transit Or In Godown: Calcutta High Court Directs Refund Of Penalty
1 year, 9 months ago

Dept. Vacillating Whether Goods Were In Transit Or In Godown: Calcutta High Court Directs Refund Of Penalty

Live Law  

The Calcutta High Court has directed the refund of the penalty and held that the department was vacillating between Sections 67 and 68 of the GST Act, depending on whether the goods are in transit or in the godown.The bench of Justice Amrita Sinha has observed that initially the authority invoked the provision of Section 67 but thereafter shifted its …

GST Dept. Empowered To Detain Vehicle And Seize The Goods: Calcutta High Court Upholds Penalty
1 year, 10 months ago

GST Dept. Empowered To Detain Vehicle And Seize The Goods: Calcutta High Court Upholds Penalty

Live Law  

The Calcutta High Court has held that the GST department was lawfully permitted to impose a penalty under Section 129 as well as the SGST as the goods were found to be detained in the territory of the state.The bench of Justice Bibek Chaudhuri has observed that Section 129 of the Central Goods and Services Tax Act, 2017, empowers the …

No Fraudulent Intention Established: Gujarat High Court Quashes Penalty
2 years 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 …

Mere E-Way Bill Expiry Does Not Establishes Intention To Evade Taxes: Gujarat High Court
2 years ago

Mere E-Way Bill Expiry Does Not Establishes Intention To Evade Taxes: Gujarat High Court

Live Law  

The Gujarat High Court has held that mere e-way bill expiry does not establish an intention to evade taxes.The division bench of Justice Sonia Gokani and Justice Mauna M. Bhatt has observed that the detention was on the ground that the goods were subject to the expiration of the e-way bill number, which had expired during the transit, and this …

Intention To Evade Tax Is Absent, Taxpayer Needs To Be Given Another Chance: Delhi High Court
2 years, 3 months ago

Intention To Evade Tax Is Absent, Taxpayer Needs To Be Given Another Chance: Delhi High Court

Live Law  

The Delhi High Court has held that the petitioner/taxpayer needs to be given another chance to establish why the subject goods did not reach their designated designation before the expiry of the e-way bill. The division bench of Justice Rajeev Shakdher and Justice Tara Vitasta Ganju has remanded the matter to the respondent to take a fresh decision on the …

Weekly Round-Up Of Tax Cases : April 3 To April 10, 2022
2 years, 8 months ago

Weekly Round-Up Of Tax Cases : April 3 To April 10, 2022

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High Courts Delhi High Court Case Title: American Express India Private Limited Versus ACIT Citation: 2022 LiveLaw 289 The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has directed the income tax department to decide on the rectification application filed by American Express and grant a refund, if any, along with the interest. Case Title: CIT …

Wrong Declaration In E-Way Bill: Madras High Court Quashes Penalty Under GST As There Was No Intention Of Tax Evasion
2 years, 8 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
2 years, 10 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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