Sanskruthi Motors vs. The Joint Commissioner (Appeals) Ii

Held

The High Court quashed the penalty order, finding the demand for tax and major penalty without jurisdiction as there was no finding of intent to evade tax and a valid explanation for the e-way bill's expiry. Relying on a Supreme Court-affirmed Telangana High Court judgment, it held that such situations warrant only a minor penalty. The matter was remanded to the first respondent to reconsider the penalty amount.

Facts

The petitioner, a goods transporter, was penalized and subjected to IGST demand for an expired e-way bill while transporting a tipper lorry. The vehicle was intercepted the day after the e-way bill's expiry. The petitioner's appeal under Section 107 was returned for non-payment of admitted tax and pre-deposit, prompting a writ petition challenging the penalty and the appeal's rejection.

Key Issues

Whether a major penalty and tax demand are justified under Section 129 for an expired e-way bill when there is a valid explanation and no intent to evade tax. Whether minor discrepancies in e-way bills warrant only a minor penalty as per statutory circulars.