Expiry of E-way bill does not infer evasion of tax by the registered person: SC enhanced personal penalty on revenue officer.

24-Jan-2022 Admin 1 E-Way Bill, Evasion Of Tax, GST, Goods And Services Tax 663 Views

Supreme Court in Satyam Shivam Papers Pvt Ltd on 12-01-2022 has confirmed Telangana High Court judgment on 02-06-2021, which said that collection of tax and penalty on the intercepted goods merely on the grounds of expiry of E-Way Bill without considering explanation of the assesse is blatant misuse of the power.

The assesse represented that e way expired because of road blocks cause by CAA and NRC agitations. Explanation given in response to show cause notice was not considered in penalty order.

Supreme Court held that contention that there is intent to evade tax because e way bill has expired and not updated 4 hours before and 4 hours after the expiry time is baseless and goods could not be taken to destination in time due to circumstances beyond control of the assesse.

High Court had imposed fine of Rs. 10000/- on the officer but supreme court considering the corresponding harassment faced by the assesse increased the fine to Rs. 69000/- [equivalent to gross tax and penalty imposed on the assesse.

Share this article