Order Date – 05 February 2024

Parties: M/s Globe Panel Industries India Pvt. Ltd. Vs State of U.P. and Others

Facts –

• The Petitioner, M/s Globe Panel Industries India Pvt. Ltd., transported the goods with two e-Invoices and two E-Way Bills. However, due to a breakdown, one of the e-way bills expired, leading to the detention of the goods and imposing penalty.

Issue –

• Whether the detention and imposition of penalty is proper?

Order –

• The Single Bench of Hon’ble High Court observed that the goods in the vehicle were for two e-Invoices and two E-Way Bills and only one E-Way Bill had expired. There is no dispute with regard to the consignor and consignee nor any dispute with regard to the description of the goods in the vehicle. In relation to the e-Invoices and the E-Way Bills, the authorities have not been able indicate any intention whatsoever on behalf of the petitioner to evade tax.
• Indubitably, there is a technical violation that has been committed by the petitioner. However, the authorities have not been able to indicate in any manner that the E-Way Bill had been used repeatedly nor have they made out any case with regard to an intention to evade tax by the petitioner. Such a technical violation by itself without any intention to evade tax cannot lead to imposition of penalty under Section 129(3) of the Act.
• The Court directs the respondents to refund the amount of tax and penalty deposited by the petitioner. The writ petition allowed.