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IN THE HIGH COURT OF DELHI AT NEW DELHI
YASHWANT VARMA, HARISH VAIDYANATHAN SHANKAR
Kamal Envirotech Pvt. Ltd – Appellant
Versus
Commissioner Of GST – Respondent
JUDGMENT :
YASHWANT VARMA, J.
1. The writ petitioners have approached this Court aggrieved by the demands raised by the respondents in purported application of the provisions enshrined in Section 129 of the Central Goods & Services Tax Act, 2017 (Act) and which have subsequently come to be affirmed by the appellate authorities. The Order-in-Original which is impugned by Kamal Envirotech Pvt. Ltd. (Kamal Envirotech) is dated 26 September 2020 and which ultimately came to be affirmed by the appellate authority in terms of its decision rendered on 15 January 2022. In the matter of M/s Zeon Life Sciences Ltd. (Zeon Life Sciences), a demand originally came to be created against that writ petitioner by an order dated 12 January 2021, and which too was upheld by the appellate authority by its order of 15 February 2022. The demands themselves emanate from an allegation levelled against the writ petitioners of goods having been transported under an incomplete E-way Bill (EWB), Part B whereof was incomplete or missing. The factum of taxes leviable on such goods having been duly paid is not disputed.
2. The respondents, however, would bid us to hold that Section 129 is a penal provision that
Penalties under Section 129 of the CGST Act must not apply to minor infractions without intent to evade tax, emphasizing moderation and rectifiability of documentation errors.
Penalties under GST Act require evidence of intent to evade tax; mere technical omissions do not warrant penalties when tax has been duly paid.
Minor procedural lapses in compliance with tax regulations should not attract severe penalties, especially when there is no intent to evade tax.
Minor errors in e-way bills do not justify detention under Section 129 of the CGST Act if the goods are otherwise properly documented.
The court established that confiscation under Section 130 requires prior action under Section 129, and adherence to natural justice is essential in such proceedings.
Minor discrepancies in transport documentation do not warrant penalties under Section 129 of the Central Goods and Services Tax Act, with general penalties appropriately applied instead under Section....
Intention to evade tax is a prerequisite for imposing penalties under GST Act; mere technical issues should not warrant such penalties.
Minor deviations in transport routes without intent to evade tax do not warrant harsh penalties; authorities should impose general penalties for trivial lapses in compliance with the Goods and Servic....
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