Case: Rawal Wasia Yarn Dying Pvt. Ltd. Vs Commissioner Commercial Tax and Another (Allahabad High Court) (Writ Tax No. 352 of 2023)
The court observed that the invoice itself contained the details of the truck and the error committed by the taxpayer was that of a technical nature only and without any intention to evade tax. Once this fact has been substantiated, there was no requirement to levy penalty.
Fact
- The taxpayer is aggrieved by an order dated May 24, 2022 passed under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as “the Act”) levying penalty upon the taxpayer and the subsequent appellate order dated October 15, 2022 dismissing the appeal filed.
- The only controversy involved in the present petition is with regard to non-filling up of Part ‘B’ of the e-Way Bill.
- The undisputed facts are that firstly the invoice in fact had the details of the truck that was carrying the goods; secondly, the goods were not in variance with the invoice; and thirdly, the Department has not been able to indicate any kind of intention of the taxpayer to evade tax.
- The learned counsel of the taxpayer placed reliance on judgements of the high court itself in the matter of VSL Alloys (India) Pvt. Ltd v. State of U.P. & another and M/s Citykart Retail Private Limited through Authorized Representative v. Commissioner Commercial Tax & Another, in support of the argument that non filling up of Part ‘B’ of the e-Way Bill by itself without any intention to evade tax cannot lead to imposition of penalty under Section 129(3) of the Act.
Held
- Relying on its own judgement in the case of M/s Citykart Retail Pvt. Ltd.’s, the court observed that as the invoice itself contained the details of the truck and the error committed by the taxpayer was of a technical nature only and without any intention to evade tax. Once this fact has been substantiated, there was no requirement to levy penalty under Section 129(3) of the Act.
- The department has been directed to return the security to the taxpayer within six weeks from date. Accordingly, the original order quashed and set aside.