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SHEKHAR B. SARAF
Poddar Tyres Ltd. – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Shekhar B. Saraf, J.
Heard Sri. Shubham Agrwal, learned counsel for the petitioner and Sri. R.S. Panday, learned Standing Counsel for the State.
2. This writ petition has been filed assailing the penalty order dated March 19, 2019 passed by respondent no. 2 and the order dated March 16, 2020 passed by appellate authority, respondent no.3.
3. The petitioner before this Court is a registered dealer under the Goods and Service Tax Act, 2017 (hereinafter called as "Act of 2017"). It is engaged in the business of manufacturing and sale of tyres. The dealer was making a stock transfer from its unit at Ludhiana to a sale depot at Asansol, West Bengal. The goods were being shifted through Truck No.RJ 13 GB 0072 which was accompanying invoice, e-way bill and bilty on March 2, 2019. The mobile squad on March 11, 2019 intercepted the goods and detained the vehicle in question along with the goods on the premise that in the e-way bill the vehicle number has been mentioned as PB 11 AN 9287. Detention order was passed on March 16, 2019. Thereafter, a penalty order under Section 129(3) of the Act of 2017 was passed imposing a tax of Rs. 1,49,695/- and penalty of the same amount, totalling
Minor clerical errors in e-way bills do not attract penalties under GST if there is no intent to evade tax.
Minor discrepancies in vehicle registration numbers on e-way bills, without intent to evade tax, do not warrant penalties under the Goods and Services Tax Act.
The presence of mens rea for evasion of tax is essential for the imposition of a penalty under Section 129 of the Goods and Service Tax Act.
Penalties should be reserved for cases where there is a demonstrated actual intent to evade tax, and technical errors without potential financial implications should not be grounds for imposition of ....
Minor errors in e-way bills do not justify detention under Section 129 of the CGST Act if the goods are otherwise properly documented.
Discrepancies in documentation do not imply tax evasion when proper documentation is present during stock transfers.
A technical error in documentation without intent to evade tax does not justify penalty under the Uttar Pradesh Goods and Service Tax Act.
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