Case: Saraf Trexim Limited Vs Deputy Commissioner of State Tax & Ors. (Calcutta High Court) (FMA/256/2023)
In another significant judgement by the high court, the court observed that unless and until it is established by the department that the transporter of the goods or the owner of the goods had an intention to contravene the provisions of the Act and evade tax, the question of imposing penalty under Section 129 of the Act that too 200% would not be justified.
Facts
- The undisputed facts are that the goods in question were transported by the appellant in the vehicle bearing Registration No. WB-27-2590 accompanied by an e-way bill generated on 11.06.2022. The e-way bill was valid up to midnight on 13.06.2022.
- On 14.06.2022 the vehicle was intercepted. The authorities found that the e-way bill had expired at 12 midnight on 13.06.2022 and fresh e-way bill has not been generated.
- The taxpayer explained that the lapse occurred on the ground that the vehicle met an accident, this also had added to the delay in the process and in any event on 15.06.2022 the second e-way bill was generated.
- At the time when the vehicle was intercepted, hardly 24 hours had expired from the time at which the first e-way bill had expired
Held
- Observed that each case has to be decided on the peculiar facts and circumstances and the court can definitely take into consideration the bonafede of the transaction and in the instant case the delay have been less than 24 hours.
- Observed that in the similar matters, court has taken a view that unless and until it is established by the department that the transporter of the goods or the owner of the goods had an intention to contravene the provisions of the Act, the question of imposing penalty under Section 129 of the Act that too 200% would not be justified. Held that in the instant case no penalty can be imposed on the taxpayer.
- Also directed the taxpayer to file the refund application to claim the penalty he had deposited during the pendency of the proceedings and refund be affected as expeditiously as possible preferably within six weeks from the date of receipt of this order.