Order Date – 24 July 2025

Parties: M/s Metloy Cast Vs Additional Commissioner Grade 2 & Another

Facts -

• The Petitioner, M/s Metloy Cast, a manufacturer and supplier of pipe fittings and casting goods, dispatched a consignment from Ahmedabad to West Bengal on 28.11.2023 with a valid tax invoice and e-way bill.
• However, Part-B of the e-way bill could not be filled due to a technical glitch. The goods were intercepted on 01.12.2023 in Agra and detained. A penalty order under Section 129(3) of the GST Act was issued on 06.12.2023, later upheld in appeal on 09.05.2024, prompting the writ petition.

Issue -

• Whether penalty is justified solely due to non-filling of Part B of the e-way bill in the absence of intent to evade tax?

Order -

• The single bench of Hon’ble High court observed that the Division Bench of this Court in M/s Tata Hitachi Construction Machinery Company Private Limited has categorically held that non-filling of e-way bill will not attract penalty under section 129(3) of the GST Act. The same view has been reiterated by this Court in M/s Citykart Retail Private Limited and M/s Roli Enterprises. Further, the record reveals that due to technical error, Part - B of the e-way bill could not be filled, which has not been disputed at any stage.
• In the light of the aforesaid facts, there was no intention of the petitioner to evade payment of tax, which would amount to levy of penalty under section 129(3) of the GST Act. 
• In view of the aforesaid facts & circumstances of the case, the impugned order dated 09.05.2024 cannot be sustained in the eyes of law. The same are hereby quashed.