Order Date – 12 April 2024

Parties: M/S Luminous Power Technologies Private Limited Vs State Of U.P. And 2 Others

Facts –

• The Petitioner, M/S Luminous Power Technologies Private Limited, was making a stock transfer from its unit at Saharanpur depot to a sale depot at Ghaziabad. The goods were being shifted accompanying delivery challan, e-way bill and bilty on 17.5.2018.
• The mobile squad on May 18, 2018 intercepted the goods and detained the vehicle in question along with the goods on the premise that in the e-way bill the vehicle number has been mentioned wrongly. Detention order was passed and penalty under Section 129(3) was imposed.

Issue –

• Whether the wrong mention of number of Vehicle in e-way bill would be considered as a human error?

Order –

• The Single Bench of Hon’ble High Court observed that As there is no dispute to the fact that it is a case of stock transfer and there is no intention on the part of dealer to evade any tax, the minor discrepancy as to the registration of vehicle in State in the e-way bill would not attract proceedings for penalty under Section 129 and the order passed by the detaining authority as well as first appellate authority cannot be sustained.
• Moreover, the Department has not placed before the Court any other material so as to bring on record that there was any intention on the part of the dealer to evade tax except the wrong mention of part of registration number of the vehicle in the e-way bill. The number of vehicle through which the goods were transported was manually corrected by the transporter while only there is a minor discrepancy in Part-B of the e-way bill where the description of the vehicle is entered by the dealer.
• Writ petition is allowed.