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Facts –

The Appellant, M/s. Perfect Enterprise, purchased 32.83 MT of bitumen 60/70 from M/s Prejag Petrochem against the invoice dated April 20, 2022 and e-way bill dated April 20, 2022 and valid upto May 2, 2022.
When the vehicle reached at stockyard it was closed and the next working day i.e May 3, 2022, the stockyard was also closed because of Ed-Ul-Fitr as a result, the vehicle could not enter the stockyard for unloading of the goods.
On May 4, 2022 at 3:20 AM, the vehicle was intercepted by State Tax Officers. The goods and the vehicle were detained by issuing a detention order on the ground of vehicle being found in transit with an expired e-way bill. A show cause notice was issued on May 7, 2022 by proposing a penalty

Issue –

Whether the authority were justified in imposing tax and penalty on expiry of E-way bill?

Order –

The Divisional Bench of Hon’ble High Court relied on the judgment of the court in the case of Hanuman Ganga Hydro Projects Private Limited -vs- Joint Commissioner, State Tax Authority, Silliguri Circle and Another reported in 2022 (50 Tax.com.023). It was held by the Coordinate Bench of this Court that since it is not a case of willful attempt on the part of the writ petitioner to evade payment of tax, the orders passed by the Appellate Authority and the penalty were all set aside and quashed.
In the present case also the e-way bill was valid up to May 2, 2022 and the vehicle of the petitioner reached Silliguri on May 2, 2022 before the expiry of e-way bill but due to national holiday on May 3, 2022, the stockyard was closed and in the early morning May 4, 2022 at 3:20 AM, the vehicle was intercepted at Bakuabari which is about 16/17 kilometers from the destination. There is no other allegation against the petitioner.
It was held that there is no lack of bona fide on the part of the petitioner to state that there was wilful misconduct committed by the petitioner while transporting the goods. The petitioner is entitled to apply for refund of penalty paid which shall be considered within 15 days from the date of application.

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