Order Date: 23 August 2022

Facts-

• The Petitioner, Nirmal Kumar Mahaveer Kumar transported goods from Guwahati to Delhi. The e-way bill was prepared for those goods which was valid till September 28, 2020. The goods reached its destination on September 29, 2020, by which time the e-way bill expired.
• Accordingly, a show-cause notice dated September 30, 2020 was issued by the assessing authority to the Petitioner under Section 129(3) of the CGST Act 2017 the reason given, “goods not covered by valid documents”. The Petitioner paid the amount demanded towards tax and penalty, as he was keen that the goods reached the designated destination at the earliest and did not avail of the opportunity of being heard.
• Subsequently, the Respondent passed an Order dated December 31, 2021 and imposed tax along with the penalty equal to 100% of tax payable. 
• Being aggrieved by the Impugned order the Petitioner filed the writ petition.

Issue-

• Whether the Petitioner is liable to pay tax along with the penalty equal to 100% of tax?

Order-

• The Division Bench of Hon’ble High Court observed that it is not in dispute that tax stands paid, and that the impugned demand has been raised, only for the reason that at the time of interception, the e-way bill was not valid. This is not a case where the Petitioner intended to evade tax. However, the impugned demand seeks not only the payment of tax but also a penalty.
• The Court further, observed that the Petitioner paid the amount demanded towards tax and penalty, as he was keen that the goods reached the designated destination at the earliest but the Petitioner did not avail of the opportunity to demonstrate, that the goods could not reach their destination before the expiry of the validity period of the e-way bill.
• Therefore, the Court set aside the impugned order and remanded the matter to the assessing authority, to take a fresh decision in the matter, after giving the Petitioner due opportunity to produce relevant material or evidence to establish its case, that the delay in transporting the goods to their destination was on account of genuine reasons. Further, stated that while carrying out this exercise, the concerned officer to bear in mind, the provisions of Section 126 of the CGST Act which inter alia adverts to omission or mistake in documentation which is easily rectifiable.
• The writ petition is disposed of.