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IN THE HIGH COURT OF ALLAHABAD
Hon'ble Rohit Ranjan Agarwal,J.
Gurunanak Arecanut Traders – Appellant
Versus
Commercial Tax – Respondent
| Table of Content |
|---|
| 1. petitioner sold arecanut (Para 3) |
| 2. detention order without hearing (Para 4) |
| 3. misclassification of goods (Para 5) |
| 4. intention to evade tax (Para 6) |
| 5. evidence of tax evasion (Para 7) |
| 6. non-compliance with e-way bill (Para 8 , 9 , 10) |
| 7. e-way bill mandatory (Para 11 , 18) |
| 8. presumption of tax evasion (Para 12 , 13 , 14 , 15 , 16) |
| 9. writ petition dismissed (Para 17) |
JUDGMENT
1. Heard Ms. Pooja Talwar, learned counsel for the petitioner and Sri Arvind Kumar Mishra, learned Standing Counsel for State.
3. The brief facts of the case are that petitioner is a registered dealer under State Goods and Service Tax Act, 2017 (hereinafter called as “the Act of 2017”). He has sold 400 bags of Arecanut vide tax invoice dated 09.06.2022 to M/s. Jagdamba Enterprises, Nagpur which is also said to be a registered dealer in his respective State. The said Arecanut was being transported from Delhi to Nagpur, Maharastra by M/s. Ravi Goods Transport. The goods were intercepted at Mathura at 4:28 a.m. on 10.06.2022. The goods while in transit were not carrying the e-way bill. The e-way bill was generated on 10.06.2022 at 7:36 a.m. and was valid till 16.06.2022. A physical verification of c
E-way bill is mandatory for transporting goods; failure to carry it raises a presumption of tax evasion, which must be rebutted by the transporter.
For imposition of penalties under the GST Act, intent to evade tax must be established; mere expiration of documents does not suffice.
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 absence of essential documents with intercepted goods raises a presumption of intention to evade tax, shifting the burden of proof to the assessee to rebut this presumption.
The requirement for a complete e-way bill for the transportation of goods is mandatory, and failure to comply raises a presumption of tax evasion.
For proceedings under section 129 of the UPGST Act, there must be intent to evade tax established; a mere technical breach does not warrant penalties.
Intention to evade tax is a prerequisite for imposing penalties under GST Act; mere technical issues should not warrant such penalties.
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