Order Date – 01 March 2024

Parties: M/s Jhansi Enterprises, Nandanpura, Jhansi Vs State of U.P. and Others

Facts –

• The Petitioner, M/s Jhansi Enterprises, failed to generate e-way bill at proper time due to non availability of computer operator and was generated after the interception took place with a delay of almost 4 hours after the commencement of transportation of the goods.
• A show cause notice was issued to the petitioner under Section 129(3) of the Act stating that the movement of the goods was in contravention to the provisions of the Act. The demand was confirmed against the petitioner.

Issue –

• Whether the failure to generate e-way bill at proper time will leads to imposition of tax and penalty?

Order –

• The Single Bench of Hon’ble High Court observed that if there is no intention to evade tax on the part of a person then imposition of tax and penalty is not proper and justified. But there must be some reasonable grounds to show that there was actually no intention to evade tax on the part of tax payer.
• The petitioner, in the present case, could not explain the absence of invoice and e-way bill with a proper and reasonable explanation. Ergo, he has not been able to rebut the presumption of evasion of tax. Mere furnishing of the documents subsequent to the interception can not be a valid ground to show that there was no intention to evade tax. There must be some reasonable grounds to justify the non-production of documents at the proper time.
• Hence, it was held that the petitioner herein has not complied with the provisions of law, hence the steps taken by the respondent authorities are proper and in accordance with the law and require no interference by this court. Accordingly the writ petition is dismissed.