GST
TRT-2025-
High court of Calcutta
Date:-09-09-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 09 Sept 2025
Parties: Hindusthan Biri Leaves & Anr. v. Assistant Commissioner of State Tax, Bureau of Investigation, Durgapur Zone & Ors.
Facts –
- The petitioner, a firm trading in biri (kendu) leaves, purchased 329 bags from Chhattisgarh under valid invoice and e-way bill, which expired at midnight on 27 July 2022.
- On 29 July 2022, at 1:05 a.m., the vehicle was intercepted; the only allegation was expiry of the e-way bill. No discrepancy in goods or documents was found.
- The petitioner explained delay due to traffic blockage and, since the goods were perishable, paid penalty under protest to secure release.
- Reliance was placed on Satyam Shivam Papers (SC) and Progressive Metals Pvt. Ltd. (Calcutta HC), holding that expiry alone does not justify penalty.
Issue –
- Whether mere expiry of an e-way bill, without evidence of tax evasion, is sufficient ground for imposition of 200% penalty under Section 129 of the GST Act?
Order –
- The Court held that the delay was bona fide, caused by traffic blockage, and not disputed by the Department. No intent of tax evasion was shown.
- Mechanical imposition of 200% penalty was held arbitrary and disproportionate.
- Expiry of an e-way bill, without mala fide intent, cannot attract harsh penalties.
- Orders of the original and appellate authorities were quashed, and the Department was directed to refund the penalty within 8 weeks of application.
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