Order Date – 23 April 2024

Parties: M/S Ld Goyal Steels Pvt Ltd Vs State Of Up And 2 Others

Facts –

• The Petitioner, M/S Ld Goyal Steels Pvt Ltd, was imposed with a penalty under section 129(3) alleging that the e-way bill had expired one hour fifteen minutes prior to interception.

Issue –

• Whether the imposition of penalty on expiry of e-way bill is valid?

Order –

• The Single Bench of Hon’ble High Court observed that in the present case clearly does not indicate any mens rea whatsoever for evasion of tax. The goods were accompanied by the relevant documents and the explanation of the petitioner with regard to slow movement of the goods clearly indicate that the truck had broken down resulting in delay. This factual aspect should have been considered by the authorities below.
• The breach committed by the petitioner with respect to not extending time period of the e-way bill is only a technical breach and it cannot be the sole ground for penalty order being passed under Section 129(3) of Act.
• Since the authorities with regard to intention to evade tax is not supported by the factual matrix of the case, and accordingly, the impugned orders are quashed and set aside.The writ petition is allowed.