Order dated 02 August 2025
Parties: M/s. Appollo Plywood Industries & Ors. Vs.the Assistant Commissioner of Revenue,
State Tax, & Ors

Facts –

• The appellants filed the writ petition challenging the order passed by the appellate authority WBGST/CGST Act, 2017(for brevity “the Act”). By the said order, the appellate authority confirmed the penalty imposed on the appellants i.e. Rs.7,31,661.00/- under Section 129 of the Act on the ground that the goods were being transported without a valid e-way bill were being transported without a valid e-way bill.

Issue –

• Whether the order passed by the appellate authority dated November 22, 2024 under Section 107 of the WBGST/CGST Act valid?

Order –

• The division bench of the Hon’ble High court held that the in the absence of any intent to evade payment of tax, in all cases where e-way bill has expired that too within less than 24 hours, the authority should take an informed decision and consider other aspects as well. In the instant case, the parties have not disputed any other document, nor the nature of the goods, nor its weight or any other documents concerning the vehicle in which the goods were being transported. 
• Therefore, the Court was of the view that this is not a fit case where 200 per cent penalty should have been imposed on the appellants.
• However, for the default committed by the appellants, which resulted in the movement of the goods without a valid e-way bill on April 4, 2025 up to 3.10 p.m. would definitely warrant a notional penalty and not penalty @ 200 per cent.