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SHEKHAR B. SARAF
Girish and Company – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Shekhar B. Saraf, J.
Heard Sri. M.M. Rai, learned counsel for the petitioner and Sri. Ravi Shanker Pandey, learned Additional Chief Standing Counsel for the respondents.
2. This is a writ petition under Article 226 of the Constitution of India wherein the petitioner has assailed the order dated December 23, 2018 passed by the respondent No.4 in appeal. The penalty order under Section 129(3) of the Uttar Pradesh Goods and Service Tax Act, 2017 (hereinafter referred to as the Act) was passed on January 10, 2018.
3. Mr. Rai, learned counsel appearing on behalf of the petitioner submits that during the relevant period there were successive changes in the notification and due to the said fact, the Division Bench of this Court in Godrej Boyce Manufacturing Co. Ltd. v. State of U.P. and others reported in 2018 NTN (68) 53 held as under:
Penalties under tax law cannot be imposed without clear evidence of intentional wrongdoing, especially amid rapid legislative changes causing confusion.
Technical violations without intent to evade tax do not justify penalties under the Uttar Pradesh Goods and Services Tax Act.
Intention to evade tax is a prerequisite for imposing penalties under GST Act; mere technical issues should not warrant such penalties.
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 ....
The imposition of penalties under tax laws requires clear evidence of intent to evade tax, and procedural fairness must be upheld in enforcement actions.
A technical error in not filling Part 'B' of an e-Way Bill, without intent to evade tax, does not justify a penalty under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act.
Intent to evade tax is a necessary condition for proceedings under Sections 129 and 130 of the CGST Act; absence of such intent invalidates penalties imposed under these sections.
For imposition of penalties under the GST Act, intent to evade tax must be established; mere expiration of documents does not suffice.
Mens rea is essential for imposing penalties under tax laws; technical faults without intent to evade tax should not attract penalties.
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