Relay Express Private Limited And Anr. vs. State Tax Officer,Goods And Services Tax, Bureau Of Investigation, S.Bengal Howrah Zone And Ors.
Original PDF →Facts
The petitioner, Relay Express Pvt. Ltd. & Anr., challenged the detention of their vehicle and goods by the State Tax Officer, Goods and Services Tax, Bureau of Investigation, South Bengal Howrah Zone & Ors. The detention was based on the non-updation of Part-B of the e-waybill. The petitioner contended that this was due to a technical problem and was rectified within two minutes of the vehicle's interception. Despite the validity of the updation not being doubted, a penalty of Rs. 8.71 lakh was imposed by an order dated 30th July, 2023. The petitioner argued that this penalty was harsh given the genuine difficulty and lack of intent to evade tax.
Held
The Court held that the penalty of Rs. 8.71 lakh imposed on the petitioner was very harsh and not justifiable. The Court found that the violation of not updating Part-B of the e-waybill was due to a genuine difficulty and there was no intention of tax evasion. The formality of updating Part-B was complied with immediately within two minutes of the vehicle's interception. Therefore, considering the exceptional facts and circumstances, the Court deemed a penalty of Rs. 50,000/- to be justifiable. All legal consequences were directed to follow automatically based on this revised penalty. The Court disposed of the writ petition with this observation and direction.
Key Issues
1. Whether the imposition of a penalty of Rs. 8.71 lakh on the petitioner for the non-updation of Part-B of the e-waybill, which was rectified within two minutes of vehicle interception due to a technical issue, is justified, considering the absence of any intention to evade tax? (Question of law and fact, relating to Section 129 of the CGST Act/WBGST Act and relevant rules). Petitioner's arguments: The petitioner argued that the non-updation of Part-B was due to a genuine technical difficulty and not an attempt to evade tax. They emphasized that the updation was completed almost immediately after interception. The penalty imposed was disproportionately harsh given these circumstances. Revenue's arguments: The judgment does not record any specific arguments made by the revenue or the State Tax Officer.
Sections Cited
Section 129
AI-generated summary — verify with the full judgment below
2023 PB Sl. No.
WPA 25311 of 2023 Relay Express Pvt. Ltd. & Anr. Vs State Tax Officer, Goods and Services Tax, Bureau of Investigation, South Bengal Howrah Zone & Ors. Mr. Rowsan Kr. Jha. … For the Petitioners. Mr. A. Ray, Mr. T. M. Siddiqui, Mr. T. Chakraborty, Mr. S. Sanyal. …….for the State. Heard learned advocates appearing for the parties. By this writ petition, petitioner has challenged the impugned action of detention of the petitioner’s vehicle along with goods in question on the ground of non-updation of Part-B of the e-waybill. It is the case of the petitioner that due to some technical problem, the same could not be updated but immediately within two minutes of interception of the vehicle in question, the same was updated. Validity and genuineness of the updation of the Part-B was not doubted but still the respondent authority concerned detained the vehicle along with the goods and imposed penalty of Rs.8.71 lakh by the order dated 30th July, 2023 being
2 Annexure P-6 to the writ petition. I have perused the aforesaid impugned order of penalty which does not contain any cogent reason and the same is non- speaking order. Since it appears that violation of non- updating of Form-B is due to genuine difficulty and there was no intention of evasion of any tax and the formality of updating the Form-B was complied immediately within two minutes of interception of vehicle in question, imposition of penalty of Rs.8,71,074/- is very harsh, I am of the considered view that in the exceptional facts and circumstances of the case as recorded hereinabove, penalty of Rs.50,000/- will be justifiable. All legal consequences will follow automatically. With this observation and direction, this writ petition being WPA 25311 of 2023 is disposed of. ( Md. Nizamuddin, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.