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SHEKHAR B. SARAF
Ridhi Sidhi Granite and Tiles – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Shekhar B. Saraf, J.
Heard Sri. Rishi Raj Kapoor, learned counsel for the petitioner and the learned Additional Chief Standing Counsel appearing on behalf of the State.
2. This is a writ petition under Article 226 of the Constitution of India, wherein the petitioner is aggrieved by the order dated September 23, 2023 passed by the Additional Commissioner, Grade-2 (Appeal)-I, State Goods and Services Tax, NOIDA dismissing the appeal filed by the petitioner and the order in original dated April 10, 2021.
3. Upon perusal of the record, it appears that apart from an error with regard to the address of the consignee in the E- Way Bill, there were no other issues with the said consignment. The invoice contained the address, the goods matched the description in the invoice and all other materials were intact. The imposition of tax is only on the basis of a technical error with regard to address of the consignee that was wrongly written in the E-Way Bill. The authorities have not been able to indicate any mens rea on the part of the petitioner for evasion of tax.
4. In a catena of judgments, this Court has held that presence of mens rea for evasion of tax is a sine qua non for impos
The imposition of tax penalties requires proof of mens rea; mere technical errors do not justify penalties.
A technical error in tax documentation does not justify penalty without evidence of intent to evade tax.
Mens rea is essential for imposing penalties under tax laws; technical faults without intent to evade tax should not attract penalties.
Imposition of penalty for minor breaches of tax regulations or procedural requirements under the GST Act should consider the nature of the mistake and the circular issued by the Ministry of Finance.
A technical error in documentation without intent to evade tax does not justify penalty under the Uttar Pradesh 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 ....
A penalty under Section 129(3) of the Act requires proof of mens rea for tax evasion, which was absent in this case, leading to the quashing of the penalty orders.
Technical violations without intent to evade tax do not justify penalties under the Uttar Pradesh Goods and Services Tax Act.
The absence of invoices and e-way bills creates a presumption of tax evasion under the Uttar Pradesh Goods and Services Tax Act, which must be rebutted by the petitioner.
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